Westinghouse Electric Acquired for $4.6 Billion

The Vogtle Unit 3 and 4 site being constructed by primary contractor Westinghouse a business unit of Toshiba near Waynesboro Georgia is seen in an aerial

"Brookfield's acquisition of Westinghouse reaffirms our position as the leader of the global nuclear industry", said Westinghouse president and CEO José Emeterio Gutiérrez.

The proposed acquisition by Brookfield Business Partners together with institutional partners covers substantially all of the global business of Westinghouse Electric Company and its affiliated debtors and debtors-in-possession.

Representatives for Blackstone and Apollo weren't immediately available for comment. The deal is supposed to be concluded by the third quarter of this year.

The company's January 4 announcement said the $4.6 billion purchase price "for substantially all of the global business of Westinghouse Electric Company LLC and its affiliated debtors and debtors-in-possession excludes cash, but includes the assumption of certain pension, environmental and other operating obligations".

The demise of Westinghouse was a major setback for the country's nuclear industry, potentially dooming new nuclear build in the U.S. Problems with its AP1000 nuclear reactor models led to two major nuclear projects falling behind schedule and mounting costs.

Westinghouse is one the world's leading suppliers of nuclear fuel, and it provides some form of service to 80 percent of the world's 450 commercial reactors, according to court records.

The Japanese company later announced in November that it was exploring alternatives to sell the USA -based company.

The deal won't include what had been the company's most prized projects - plans to build its AP1000 reactors for US utilities in SC and Georgia.

South Carolina Electric & Gas Co. abandoned construction reactors at the V.C. Summer Nuclear Station.

Toshiba said Friday its nuclear power unit, Westinghouse Electric, will move toward rehabilitation under USA bankruptcy procedures.

Now Westinghouse has been sold for $4.6 billion to provate equity fund Brookfield Businees Partners. Citigroup initiated coverage on shares of Brookfield Business Partners L.P. Limited Partnership Units in a research report on Wednesday, December 20th.

Do you want exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more?



Other news