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The
deal for one of the most storied names in the American power
industry at an equity value of $4.5 billion comes at a time when
nuclear power is seeing an uptick in interest amid an energy
crisis in Europe and soaring crude oil and natural gas prices.
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.
Cameco will own 49% of Westinghouse, while Brookfield Renewable
and its institutional partners will own the rest.
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%
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.
(Reporting by Kannaki Deka and Arunima Kumar in
Bengaluru;Editing by Vinay Dwivedi)
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