Brookfield Asset Management to acquire Toshiba's Westinghouse for $4.6bn

Toshiba was brought to its knees by delays and costs in building two reactors at the Vogtle plant in Georgia

Toshiba was brought to its knees by delays and costs in building two reactors at the Vogtle plant in Georgia

LLC for US$4.6 billion, in a bold move that appears to be welcomed by investors.

Amid the cost overruns, returns for nuclear power generation in the US have also been under extreme pressure from abundant low-priced natural gas production, which left utility companies powered by nuclear energy at a huge disadvantage against the cheaper, gas-fired power generation companies.

Westinghouse Electric, which has its headquarters in the Pittsburgh area, is among the world's leading infrastructure suppliers to nuclear power generating facilities but sought creditor protection from U.S. Bankruptcy Court last March.

"Even though they don't have a history in nuclear it really does feel like a fit", NY city-based Keefe, Bruyette and Woods analyst Ann Dai said.

Toshiba stock rose about 2% in Tokyo following the news of the Westinghouse deal.

The deal is expected to be funded with approximately $1bn of equity, $3bn of long-term debt financing and the balance by the assumption of pension, environmental obligations.

Brookfield has $15.9bn in assets under management specialising in energy, construction and other industrial operations.

More news: Trump demands publisher stop release of book quoting ex-aide Bannon
More news: Plane disappears after taking off from Oklahoma City
More news: Joe Thornton has a handful of his beard ripped out during fight

Brookfield Business Partners said it expects to fund the purchase of 100 per cent of Westinghouse through a combination of $1 billion USA of equity, $3 billion of long-term debt and the assumption of certain obligations.

An affiliate of Canadian alternative investment firm Brookfield Asset Management said this week it would acquire Westinghouse Electric Co LLC, the bankrupt nuclear services company owned by Toshiba Corp, for US$4.6 billion ($5.7 billion), Reuters reported.

Under the terms of the deal, Brookfield and partners will acquire substantially all of the global business of Westinghouse Electric Company and its affiliated debtors and debtors-in-possession.

The two nuclear projects, which will feature Westinghouse' AP1000 reactors, include the V.C. Summer in SC which is majority owned by SCANA as well as Vogtle nuclear project in Georgia which is being developed by Southern Co-led group of utilities.

Since filing for bankruptcy, Westinghouse said it planned to get out of the business of building new reactors and focus on servicing them, including decommissioning work.

Westinghouse runs the Springfields factory at Salwick which produces fuel for reactors at power stations. He said that Saudi Arabia is now looking to add nuclear power to meet its rising demand for electricity. It is also subject to US Bankruptcy Court approval due to Westinghouse EC being put into US Chapter 11 bankruptcy protection in March.

Recommended News

  • Dimitrov sets up Kyrgios semi with win

    Dimitrov sets up Kyrgios semi with win

    Edmund was wrong-footed on the baseline and collapsed to the ground with a scream of pain after turning his ankle. The world number three immediately sprinted over to his opponent, hurdling the net and helping him to his feet.
    Tag: Sony Xperia XA2

    Tag: Sony Xperia XA2

    The XA2 will have a 7MP selfie-camera, while the XA2 Ultra will get dual 15MP front-facing cameras both of which are 4K capable. The Japanese OEM is also one of the only in the business that offers a smaller screen smartphone that doesn't skimp on specs.
    Drone footage reveals SpaceX's mighty Falcon Heavy ready for demonstration test

    Drone footage reveals SpaceX's mighty Falcon Heavy ready for demonstration test

    Musk wrote , "The payload will be an original Tesla Roadster, playing Space Oddity , on a billion year elliptic Mars orbit". And if all goes well there, Falcon Heavy should be ready for launch within the first few weeks of 2018.
  • Mason City's Jake Peter traded to Dodgers

    Mason City's Jake Peter traded to Dodgers

    If Joakim Soria had ended up with just one stint with the Royals, he'd have been a beloved figure in Kansas City forever. The 24-year-old Peter hit a combined.279 at Class AA and Class AAA in the White Sox organization.
    3 children have died from the flu in Tennessee, say health officials

    3 children have died from the flu in Tennessee, say health officials

    Local medical offices have seen so many flu cases that they are running out of testing supplies to confirm the virus, he noted. Symptoms of the flu include fever, headache, cough, runny or stuffy nose, fatigue and muscle aches.
    UIDAI probing reported Aadhaar data breach, but denies information leak

    UIDAI probing reported Aadhaar data breach, but denies information leak

    The UIDAI maintains complete log and traceability of the facility and any misuse can be traced and appropriate action taken. The Aadhaar data including biometric information is fully safe and secure.
  • Officials say to avoid romaine lettuce amid E. coli concerns

    As of now, 1 person had died and 5 others have been hospitalized with E. coli believed to be from Romaine Lettuce, in the U.S. A number of people in the U.S. and Canada have fallen ill over the past seven weeks as a result of eating romaine lettuce.
    Liverpool vs. Everton - FA Cup Preview

    Liverpool vs. Everton - FA Cup Preview

    Sadio Mane gave the Reds a second half lead but Burnley looked to be snatching a point when Liverpool conceded in the 87th minute. Liverpool boss Jurgen Klopp admitted on Thursday that he is unsure about playing Van Dijk in the Merseyside derby at Anfield.
    Blast hits police in Kabul, dozens of casualties

    Blast hits police in Kabul, dozens of casualties

    The centre is located in the Shiite-dominated Dasht-e-Barchi neighbourhood in the west of the capital. The attack took place near a security establishment at Banaee area of the city in the evening.
  • Logan Paul Announces Break From YouTube Amid Fallout From Dead Body Video

    Now the star says that he is not posting and is "taking time to reflect " in the wake of the outcry. Logan Paul was slammed on social media as well after sharing the video .
    Confusion reigns over Mourinho's long-term United future

    Confusion reigns over Mourinho's long-term United future

    United expect to welcome back forward Romelu Lukaku after he suffered a suspected concussion against Southampton last week for the Friday evening cup tie with Derby.
    Turkish President presses for peace, stability in Iran

    Turkish President presses for peace, stability in Iran

    The bank has denied any wrongdoing and said its transactions were in line with local and worldwide regulations. Turkish President Tayyip Erdogan speaks during a ceremony in Ankara, Turkey, December 21, 2017.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.