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Wednesday, February 1, 2023

Westinghouse Electric Will Be Sold as Interest in Nuclear Power Increases

Westinghouse will be 49% owned by Cameco and the remaining 51% by Brookfield Renewable

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UNITED STATES: Amid increasing interest in nuclear energy, Cameco Corp and Brookfield Renewable Partners announced on Tuesday that they would buy nuclear power plant equipment producer Westinghouse Electric in a $7.9 billion deal, including debt.

The acquisition of one of the most illustrious companies in the American power sector for an equity value of $4.5 billion comes at a time when interest in nuclear power is rising due to the European energy crisis and rising crude oil and natural gas costs.

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Nuclear power is also essential for nations to achieve the global net-zero carbon emission objectives and may be about to experience a boom similar to that observed during the oil crises of the 1970s.

Tim Gitzel, chief executive of uranium fuel producer Cameco, stated that the nuclear energy business is currently seeing some of the finest market fundamentals ever.

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Westinghouse will be 49% owned by Cameco and the remaining 51% by Brookfield Renewable and its institutional investors.

A subsidiary of Canadian asset management Brookfield (BAMa. too), Westinghouse was purchased by Brookfield Business Partners from Toshiba Corp (6502.T) in 2018 for a total of $4.6 billion, including debt.

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According to a second statement from Brookfield Business, the company anticipates receiving around $1.8 billion from selling its 44% investment in Westinghouse, with the remaining funds going to institutional investors. In the second half of 2023, the transaction is anticipated to be completed.

Cameco will incur equity costs of around $2.2 billion, while Brookfield Renewable and its partners will pay approximately $2.3 billion for the purchase. There won’t be any changes to Westinghouse’s current debt arrangement.

Also Read: India Will Buy Oil from Wherever It Has to: Union Minister Hardeep Puri

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