The Brookfield group of companies, one of the leading investors in real estate, energy, and infrastructure plans to buy Westinghouse Electric Co LLC, a Pittsburgh-based nuclear services company for $4.6 billion. Currently, this nuclear company is owned by Toshiba Corp. Brookfield decides to use $1 billion of equity and $3 billion of long-time debt funding for this acquisition.
Westinghouse, which provides various services to 80% of the world’s 450 commercial reactors, is among the world’s leading suppliers of nuclear fuel.
This deal impacted New York-listed shares of Brookfield Business Partners and they went up 3.4 % in the afternoon trading on 4th Jan. 2018.
With this deal, Brookfield enters into the nuclear power sector, though it doesn’t have any immediate plans to build nuclear power-plants.
This deal is expected to close in the third quarter, however, it will need approval from regulators and the US Bankruptcy Court.
In his statement the Westinghouse Chief Executive Officer Jose Emeterio Gutierrez said, “Brookfield’s acquisition of Westinghouse reaffirms our position as the leader of the global nuclear industry”. But Toshiba did not respond quickly to any comment request.
Mycle Schneider, an energy and nuclear policy consultant said, “Acquiring Westinghouse definitely fits the risk approach they have. They buy assets in shaky situations”.