Uranium producer Cameco, investment firm Brookfield Renewable Partners and others will buy U.S. nuclear power plant company Westinghouse Electric for $7.9 billion, including debt, in a deal that signals renewed interest in the energy form.
The sector has rarely benefited from such good market conditions, Cameco boss Tim Gitzel said in a joint statement.
“As one of the few forms of electricity generation capable of safely, reliably and affordably producing emission-free power, nuclear power is becoming increasingly important in a world that is focused on electrification, carbon reduction and energy security,” he said.
The acquisition of Westinghouse “should enhance our ability to meet the growing needs of existing and new customers at a time when origin and security of supply are major concerns,” he added.
Brookfield Renewable is an investment company specializing in renewable energy and energy storage projects. ”
Any credible path to carbon neutrality requires significant growth in nuclear power,” said Mark Carney, head of transition investments for Brookfield and former governor of the central banks of England and Canada.
Under the terms of the transaction, Brookfield Renewable and its institutional partners will pay approximately $2.3 billion to take control of 51% of Westinghouse while Cameco will pay $2.2 billion for 49%.
They will recover approximately $3.4 billion in debt.
A former subsidiary of Japanese conglomerate Toshiba, Westinghouse filed for bankruptcy in 2017 before being acquired in 2018 by Brookfield Business Partners.
The latter entity claims to have refocused Westinghouse on its core nuclear business, reduced its operating costs and made several buyouts to strengthen its expertise.
The group has about 9,000 employees in 19 countries manufacturing or managing nuclear power plants.
Brookfield Renewable and Brookfield Business are both subsidiaries of Canadian asset manager Brookfield Asset Management.
The transaction is expected to close in the second half of 2023.
