Herbert Smith Freehills has advised Cavendish Fluor Partnership, a joint venture between Cavendish Nuclear and Fluor Corporation, on its successful bid to acquire Magnox Limited and Research Sites Restoration Limited ("RSRL"), the Site Licence Companies for 12 nuclear sites in the UK.

The Nuclear Decommissioning Authority ("NDA") announced on 31 March 2014 that Cavendish Fluor Partnership had been named as the preferred bidder.

The competition was run through the Competitive Dialogue Process and the parties will now enter a mandatory 10-day standstill period. This will be followed by a five-month transition period during which the contract between the NDA and Cavendish Fluor Partnership will be finalised. The transition period will also allow for a handover to the new management team. The formal award of the contract is planned for 1 September 2014 and the competitive process will continue until then with the non-preferred bidder being kept in reserve until the contract is formally awarded.

Magnox Limited is responsible for decommissioning the 10 Magnox reactor sites built during the 1950s and 1960s which made up the first generation of nuclear power plants in the UK while RSRL is responsible for decommissioning two pioneering nuclear research centres at Harwell and Winfrith. The deal is expected to deliver savings of over £1 billion in the decommissioning of the 12 nuclear sites.

The Cavendish Fluor Partnership will take ownership of Magnox Limited and RSRL through a share transfer and will become the new Parent Body Organisation. Herbert Smith Freehills will continue to advise Cavendish Fluor Partnership through to completion of the share transfer.

The Herbert Smith Freehills team was led by energy partner Julia Pyke and senior associate Sarah Pollock, both part of the firm's nuclear practice which is also currently advising EDF on its Hinkley Point C project and the Government of Jordan on its nuclear project being developed with Rosatom. The firm also advised the UK Government on the original formation of the NDA and the structure of the contracts for decommissioning.

Julia Pyke comments:  'We are delighted to have had the opportunity to support Cavendish and Fluor on their successful bid for this significant UK public procurement'.