Westinghouse Electric Company, the US nuclear engineering group that went bankrupt last year, has been sold by its owner Toshiba to Canadian asset manager Brookfield in a $4.6bn deal. The acquisition, which is conditional on approval from the bankruptcy court and regulators around the world, is a vote of confidence in the future of Westinghouse’s nuclear services business, in spite of the problems at the two large new nuclear construction projects in the US that forced the company into bankruptcy. Brookfield Business Partners, a separately-listed private equity unit of Brookfield Asset Management, is paying about $4bn in cash for 100 per cent of Westinghouse’s equity, with pension and environmental costs and other liabilities making up the remainder of the price.
FT 4th Jan 2018 read more »
BBC 4th Jan 2018 read more »
Since filing for bankruptcy in March, Westinghouse said it planned to get out of the business of building new reactors and focus on servicing them, including decommissioning work. Since then, reports have surfaced that the Trump administration is encouraging Saudi Arabia to consider bids by Westinghouse and other U.S. companies to build reactors — a politically controversial bid considering previous U.S. agreements prohibited the enrichment of uranium. The deal won’t include what had been the company’s most prized projects — plans to build its AP1000 reactors for U.S. utilities in South Carolina and Georgia. Those projects, plagued by delays and cost overruns, eventually led to its downfall, and Westinghouse has used the Chapter 11 process to distance itself from any obligations to them.
Bloomberg 4th Jan 2018 read more »
Axios 4th Jan 2018 read more »
World Nuclear News 4th Jan 2018 read more »
The Westinghouse woes saddled Toshiba with losses of $8.8bn, forcing the electronics giant to sell its prized microchip business for £18bn and back out of the NuGeneration consortium behind plans to build the Moorside plant. The nuclear project will now be built with the backing of South Korea’s Kepco which bought a 100pc stake in the consortium late last year.
Telegraph 4th Jan 2018 read more »
The Fylde coast’s nuclear fuel production factory has got a new owner after a Canadian company swooped to buy the Westinghouse Electric Company from Toshiba. Brookfield Business Partners of Toronto has shelled out $4.6bn to acquire substantially all of the global business of Westinghouse Electric Company. Westinghouse runs the Springfields factory at Salwick which produces fuel for reactors at power stations. The future of the business had been under something of a cloud after parent Toshiba got into financial trouble in February last year. It’s then chairman resigned and Toshiba said it was reviewing its entire nuclear business. It was one of the partners in the Nugen Moorside project to build three new power stations near Sellafield, for which Springfields would supply the fuel. The effect of the deal on the Westinghouse business in the UK is yet to become clear but Brookfield has a track record of investing in and developing “long-life, high quality assets.”
Blackpool Gazette 4th Jan 2018 read more »