Westinghouse acquisition completed

08 November 2023

Cameco Corporation and Brookfield Asset Management, alongside its affiliate Brookfield Renewable Partners and institutional partners, now own the company which built the world's first commercial pressurised water reactor more than 60 years ago.

Two Westinghouse AP1000s have been constructed at Vogtle units 3 and 4 (Image: Georgia Power)

Westinghouse - one of the world's largest nuclear services businesses - was acquired out of bankruptcy by Brookfield Business Partners in 2018. The planned acquisition of the company by the strategic partnership of Cameco Corporation and Brookfield was announced in October last year, and Cameco announced the receipt of the final necessary regulatory approval on 3 November. The finalising of the acquisition means Cameco now has a 49% interest, and Brookfield 51%, in Westinghouse.

Westinghouse President and CEO Patrick Fragman said is was a new era, which builds on the "strong foundation" established under previous owners. "As we look to the future, Westinghouse is strategically positioned with Brookfield and Cameco to leverage expertise in our respective areas to better serve our customers and achieve a carbon-free future," he said.

The business prospects for Westinghouse have "significantly improved" since the deal was first announced a year ago, Cameco President and CEO Tim Gitzel said, with an "undeniable" sustained and positive momentum for nuclear energy around the world.

"The partners, together with Westinghouse, are well-positioned to provide global solutions for the increasing need for secure, reliable and emissions-free baseload power," he said, noting that the combination of Cameco's 35 years of experience in uranium mining and nuclear fuel production, Brookfield’s expertise in clean energy, and Westinghouse's provision of nuclear plant technologies, products and services creates a "powerful platform for strategic growth across the nuclear sector".

"Today, we believe the demand outlook for nuclear power is better and more durable than ever, driven by the recognition of the critical role it must play in helping to solve the world’s dual climate and energy security crises. We expect this acquisition will enhance Cameco’s participation in the nuclear fuel cycle at a time when there is tremendous growth on the horizon for our industry," Gitzel said.

The "strategic and transformative acquisition" will be accretive to Cameco, he added: "We are enhancing our ability to compete for more business by investing in additional nuclear fuel cycle assets that we expect will augment the core of our business and offer more solutions to our customers across the nuclear fuel cycle."

After adjusting for working capital balances at closing, the final enterprise value was USD8.2 billion. Westinghouse will maintain responsibility for USD3.8 billion in outstanding debt commitments.

Cameco will host a virtual investor day on 19 December to further discuss the "exciting business prospects" it foresees for Westinghouse.

Researched and written by World Nuclear News