Cameco And Brookfield Renewable Form Partnership To Buy Westinghouse Electric.

Cameco Corp. and Brookfield Renewable Partners have come together and teamed up to buy Westinghouse Electric Co., one of the world’s largest nuclear services businesses, for US$4.5 billion plus assumed debt.

Westinghouse’s existing debt structure will remain in place, leaving an estimated $4.5 billion equity cost to the consortium. This equity cost will be shared proportionately between Brookfield and its institutional partners (approximately $2.3 billion) and Cameco (approximately $2.2 billion).

Power plant

The total enterprise value of Westinghouse is $7.875 billion.

Under this big deal, Brookfield Renewable, with its institutional partners, will own a 51 per cent interest in Westinghouse and Cameco will own 49 per cent in this nuclear services business

The deal is expected to create a powerful platform for strategic growth across in the nuclear sector

The companies say Westinghouse services about half the nuclear power generation sector and is the original equipment manufacturer to more than half of the global nuclear reactor fleet.

Brookfield Renewable CEO Connor Teskey says he sees significant potential to grow the business and deliver on broader growth in the nuclear power sector through its strategic partnership with Cameco in coming future.

The seller is Brookfield Business Partners, the industrials and services business of Brookfield Asset Management, that acquired the business in 2018.

The transaction is subject to approval by Brookfield Business Partners unitholders that are not affiliated with Brookfield Asset Management, as well as customary closing conditions and regulatory approvals.

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