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Pierre Duhaime, president and CEO of SNC LavalinJeff McIntosh

SNC-Lavalin Group Inc. is bolting into place another piece in its ambitious global nuclear strategy with the acquisition of safety consulting firm Nucleonex Inc.

A global engineering giant, SNC-Lavalin sees significant growth opportunities in nuclear power and recently bid for federally owned Atomic Energy of Canada Ltd.

Montreal-based SNC has been active in the nuclear market for decades, focused mainly on winning refurbishment contracts in Canada and abroad.

The acquisition of Nucleonex, also Montreal-based, bolsters its existing activities and also provides more credibility in its bid for AECL, which manufactures and exports the Candu reactor, said Neil Linsdell, an analyst with Versant Partners.

The Nucleonex acquisition "fits very well with their existing operations, but you have to think it's tied to their positioning - or solidifying their positioning - on the AECL bid," he said.

"I could see it strengthening SNC's pitch [for AECL]in terms of showing their readiness," he said.

Even if SNC fails to win AECL, Nucleonex "cranks up their expertise an extra notch," Mr. Linsdell said.

SNC spokesperson Leslie Quinton said the company is not providing details of the Nucleonex deal, such as the acquisition price. But she said SNC has worked in the past with Nucleonex and knows it well.

Nucleonex will be integrated into SNC's nuclear division, SNC-Lavalin Nuclear Inc.

SNC has also been a key partner of AECL over the years, participating in several projects.

Among SNC-Lavalin Nuclear's areas of expertise are the construction of heavy-water plants, the replacement of steam generators, refurbishments and retrofits, waste management audits and nuclear plant decommissioning.

Nucleonex's core business includes nuclear safety analysis, licensing support and regulatory affairs, risk management, environmental qualification and plant life-cycle management.

"This complements our strong capability in delivering a complete suite of nuclear-power-plant services, from concept and operations to decommissioning, worldwide," SNC executive vice-president Patrick Lamarre said in a statement Wednesday.

SNC has said previously that it hopes Ottawa will announce the winning AECL bid by the end of the year. The company has declined to provide any details of the offer to buy AECL, including what assets it would keep, which it would dispose of, and whether or not it is bidding with a partner or partners.

SNC president and chief executive officer Pierre Duhaime said last month he sees huge potential in nuclear power over the next several decades, particularly in the fast-growing economies of emerging, energy-starved countries.

Concerns over global warming and the need for cleaner, less-carbon-intensive sources of energy should also help to drive demand for nuclear power, Mr. Duhaime said.

SNC's strategy for a heightened involvement in the global nuclear business isn't risk-free. Environmental concerns over the storing of nuclear waste remain high and the regulatory burden is heavy.

Programs to overhaul Candu reactors in Canada have run into massive cost overruns.

And there is stiff competition from big global players such as General Electric Co. in the United States and France's Areva Group.







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