Cameco and Brookfield Renewable Partners to acquire Westinghouse Electric for $7.9 billion

October 12, 2022

Westinghouse Electric, one of the most storied names in the American power industry and a nuclear power plant equipment maker will be acquired by Cameco Corp and Brookfield Renewable Partners.

Reuters reported the deal is worth $7.9 billion including debt.

The deal comes as interest in nuclear energy is on the rise. Reuters reported that Brookfield will own 51 percent and Cameco will own 49 percent of Westinghouse.

Nuclear power is also key for countries to meet global net-zero carbon emission goals and could be on the cusp of a boom seen after the 1970s oil crisis.

“We’re witnessing some of the best market fundamentals we’ve ever seen in the nuclear energy sector,” Uranium fuel supplier Cameco’s chief executive, Tim Gitzel, said.

Westinghouse was acquired from Toshiba Corp by Brookfield Business Partners, an affiliate of Canadian asset manager Brookfield, out of bankruptcy in 2018, for $4.6 billion, including debt.

Brookfield Business said in a separate statement it expects to generate about $1.8 billion in proceeds from the sale of its 44 percent stake in Westinghouse, with the balance distributed among institutional partners. The deal is expected to close in the second half of 2023.

Last year, Reuters reported that Brookfield Business was exploring options including the sale of a minority stake in Westinghouse.

Brookfield Renewable and its partners will pay about $2.3 billion for the deal, whereas Cameco will incur equity costs of about $2.2 billion. Westinghouse’s existing debt structure will remain in place.

Cameco, one of the largest suppliers of uranium fuel, said it would fund the purchase through a mix of cash, debt and equity.



Related article search: