Japanese government plans to acquire controlling stake in Tepco: report

The Japanese government plans to acquire more than two-thirds stake in Tokyo Electric Power Co (Tepco), a move that would almost nationalise the owner of the tsunami-damaged Fukushima nuclear power plant, the Yomiuri newspaper yesterday reported.

The government is planning to invest 1 trillion yen ($12.7 billion), with banks being asked to lend 1 trillion yen, Yomiuri said, citing sources familiar with the matter.

Tepco has begun negotiations for the government to acquire classified stock in the company, including preferred shares, said the paper, and added that the purchase will begin next year, with an aim to complete the transaction by March 2012.

On 11 March three reactors of Tepco's Fukushima Dai-Ichi plant had melted after an earthquake and tsunami knocked out cooling and power, triggering the world's worst nuclear crisis since the 1986 Chernobyl disaster.

Following the Fukushima crisis, the Japanese government is also planning to allocate around 50 billion yen ($641 million) to create a new nuclear regulator by April 2012. 

The new regulator will employ around 500 people, who will inspect nuclear plants, check radiation levels and monitor the health of those affected by the nuclear disaster, according to a statement from the Environment Ministry.