Cameco and Brookfield to buy Westinghouse Electric Company

[OVERKILL]

Canadian nuclear fuel and mining giant Cameco (I have stock!) and Brookfield Renewable have partnered to buy Westinghouse Electric Company.

Cameco and Brookfield Renewable Form Strategic Partnership to Acquire Westinghouse Electric Company

Cameco Corporation (“Cameco”) (NYSE: CCJ; TSX: CCO) and Brookfield Renewable Partners (“Brookfield Renewable”) (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC), together with its institutional partners (“the consortium”), are forming a strategic partnership to acquire Westinghouse Electric Company...

www.cameco.com

Saskatoon/Toronto, October 11, 2022 – Cameco Corporation (“Cameco”) (NYSE: CCJ; TSX: CCO) and Brookfield Renewable Partners (“Brookfield Renewable”) (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC), together with its institutional partners (“the consortium”), are forming a strategic partnership to acquire Westinghouse Electric Company (“Westinghouse”), one of the world’s largest nuclear services businesses.

Brookfield Renewable, with its institutional partners, will own a 51% interest in Westinghouse and Cameco will own 49%.

Bringing together Cameco’s expertise in the nuclear industry with Brookfield Renewable’s expertise in clean energy positions nuclear power at the heart of the energy transition and creates a powerful platform for strategic growth across the nuclear sector.

The total enterprise value for Westinghouse is $7.875 billion. Westinghouse’s existing debt structure will remain in place, leaving an estimated $4.5 billion equity cost to the consortium, subject to closing adjustments. This equity cost will be shared proportionately between Brookfield and its institutional partners (approximately $2.3 billion) and Cameco (approximately $2.2 billion).

Brookfield Renewable is pursuing this opportunity through the Brookfield Global Transition Fund I (“BGTF I”), which is the largest fund in the world focused on the energy transition. Brookfield Renewable, which has significant available liquidity, expects to invest approximately $750 million to acquire an approximate 17% interest in Westinghouse, which will be funded through normal course funding initiatives, including asset level upfinancings and asset recycling.

Cameco currently has available liquidity and committed financing facilities for the purposes of supporting the transaction to acquire a 49% share in Westinghouse. However, Cameco will be pursuing a permanent financing mix of capital sources (cash, debt and equity), designed to preserve the company’s balance sheet and ratings strength while maintaining its liquidity, prior to closing.

Westinghouse is probably best known lately for going bankrupt during the VC Summer and Vogtle projects. That said, they have a ton of nuclear IP and seeing Brookfield invest in this is huge news for the nuclear industry.

 

[k1xv]

How the mighty have fallen. Westinghouse and GE, once giants, now dwarfs. Other than jet engines, what does GE make these days? Their stock fell mightily over the recent years.

Nikolai Tesla was the science behind early Westinghouse. He was paid in stock, and the company went into the dumper. He died living in a hotel room, rent paid by Westinghouse.

 

[PimTac]

Westinghouse seems to be a hot potato of sorts.

 

[jhellwig]

How the mighty have fallen. Westinghouse and GE, once giants, now dwarfs. Other than jet engines, what does GE make these days? Their stock fell mightily over the recent years.

Nikolai Tesla was the science behind early Westinghouse. He was paid in stock, and the company went into the dumper. He died living in a hotel room, rent paid by Westinghouse.

Westinghouse seems to be a hot potato of sorts.

I have noticed this happening to more and more companies. They get bought out by a bigger company who strips off what they want then sell the remainder. It is getting hard to keep track of who deals what products in the electrical and piping world.