Cameco and Brookfield Renewable acquire Westinghouse Electric
Cameco and Brookfield Renewable are acquiring Westinghouse Electric, one of the world’s largest nuclear services businesses, from Brookfield Business Partners.
The deal is valued at $7.9 billion. Westinghouse’s existing debt structure will remain in place, leaving an estimated $4.5 billion equity cost to the consortium, which will be shared proportionately between Brookfield (approximately $2.3 billion) and Cameco (approximately $2.2 billion).
Brookfield Renewables provides hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, with 24,000 MW of installed capacity and an approximately 100,000 MW development pipeline. Cameco, based in Saskatoon, Saskatchewan, is one of the largest global providers of the uranium fuel for nuclear energy. Westinghouse services about half the nuclear power generation sector in the United States and is the original equipment manufacturer to more than half the global nuclear reactor fleet.
“Every credible net-zero pathway relies on significant growth in nuclear power. It is an essential, reliable zero-carbon technology that directly displaces fossil fuels and supports the growth of renewables by providing critical baseload to our grids. The partnership of Brookfield and Cameco will help drive forward the growth of nuclear power the world needs for its clean energy transition,” Mark Carney, Brookfield vice chair and head of transition investing, said.
Bringing together Cameco’s expertise in the nuclear industry with Brookfield Renewable’s expertise in clean energy creates a platform for growth across the nuclear sector.
“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,” Tim Gitzel, president and CEO of Cameco, said.
Brookfield Renewable and other affiliates of Brookfield Asset Management will own a 51 percent interest in Westinghouse while Cameco will own 49 percent. Brookfield Renewable is pursuing this deal through the Brookfield Global Transition Fund I — the largest fund in the world focused on the clean energy transition.
“This is the start of an exciting new chapter for the Westinghouse team and for nuclear power,” Patrick Fragman, president and CEO of Westinghouse, said. “We are grateful to BBU for its stewardship and investments that have strengthened Westinghouse’s position in the nuclear power industry, and more broadly in the clean power world, for the long-term. Now we are proud to join Brookfield Renewable and Cameco, reaffirming the important role played by Westinghouse and nuclear power in enabling the world’s clean energy transition and energy security goals.”
The acquisition is expected to close in the second half of 2023, subject to various approvals.
