The major French nuclear energy company will buy a 30 percent stake in Mitsubishi Nuclear Fuel Co., in which Mitsubishi Heavy will be the top shareholder with 35 percent stake, they said, confirming a Sunday press report.

The tie-up will allow the nuclear reactor builders to expand fuel generation "amid the growing importance of nuclear power generation in the world against the backdrop of efforts to tackle global warming," a joint statement said.

The new company will have some 550 employees and aims to earn 50 billion yen (602 million dollars) in sales in 2020, it said.

Two other Mitsubishi group firms will also participate. Metal smelter Mitsubishi Materials Corp. and trading house Mitsubishi Corp. will hold a 30 percent stake and a five percent stake respectively.

Nuclear power has been increasingly in favour both in wealthy and developing nations due to concerns over the environmental damage, costs and political effects of dependence on Middle Eastern oil.

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