Canadian uranium production company Cameco, Brookfield Renewable Partners and its institutional partners have jointly signed an agreement to acquire nuclear power company Westinghouse Electric in a deal worth $7.87bn.

The US-based nuclear energy company will be bought from Brookfield Business Partners and its institutional partners.

Currently, Westinghouse Electric services nearly half the nuclear power generation sector. In addition, it is the original equipment manufacturer (OEM) of more than 50% of the global nuclear reactor fleet.

Employing approximately 9,000 people, Westinghouse Electric has four main business lines that include operating plant services, nuclear fuel, energy systems, and environmental services.

Brookfield Business Partners, a unit of Brookfield Asset Management, purchased the nuclear energy industry giant in 2018.

Cyrus Madon — Brookfield Business Partners CEO said: “We are pleased to have reached an agreement to sell Westinghouse that crystalizes meaningful value for our investors and provides significant proceeds to support our continued growth. We have significantly enhanced the business’ operations over the past four years, increasing its margins and strengthening its global leadership position.

“Westinghouse is an exceptionally well-run business today and has a great future.”

Subject to customary closing conditions and approvals, the acquisition of Westinghouse is expected to be completed in the second half of 2023.

Upon completion of the acquisition, Brookfield Renewable Partners and its institutional partners will hold a 51% stake in Westinghouse Electric, while the nuclear fuel supplier Cameco will own the remaining 49%.

However, the existing debt structure of Westinghouse Electric will remain in place, resulting in an estimated equity cost of $4.5bn to the Cameco and Brookfield consortium.

Tim Gitzel — Cameco president and CEO said: “We’re witnessing some of the best market fundamentals we’ve ever seen in the nuclear energy sector. As one of the few forms of electricity generation capable of safely, reliably and affordably producing emissions-free, baseload power, nuclear energy is becoming increasingly important in a world that prioritizes electrification, decarbonization and energy security.

“The opportunity to partner with Brookfield Renewable, a leader in the clean-energy space, to acquire Westinghouse is expected to create a platform for growth across the nuclear value chain.”

  Brookfield, Brookfield Asset Management, Brookfield Business Partners, Brookfield Renewable Partners, Cameco, Cyrus Madon, Nuclear power industry news, Tim Gitzel, USA, Westinghouse Electric