Is nuclear power dying out? The world’s second-biggest infrastructure investor just bet $4.6 billion that it’s not.Westinghouse Electric Co., the slice of Toshiba Corp.’s bankrupt nuclear business focused on providing fuel and maintenance services to power stations, will be bought at that price by Brookfield Asset Management Inc.’s private equity arm Brookfield Business Partners LP, the company said Thursday. It’s not entirely clear how much of the former Toshiba nuclear-service business it’s buying — about half of earnings has traditionally come from units not trading under the Westinghouse moniker. Given that the only other major competitors in fueling and servicing reactors globally are Rosatom, France’s Areva SA and Kepco Nuclear Fuel Co., that’s a substantial fleet of customers with few obvious alternatives. Many of the plants under construction are based on Westinghouse’s own AP1000 reactor design, giving it a substantial advantage.As the woes of Westinghouse’s Vogtle and VC Summer and the U.K.’s Hinkley Point have indicated, building new nuclear reactors is a business that has terminally gone out of fashion, hobbled by astronomical costs and the shift in global energy toward more nimble, renewables-based grids.Maintaining and supplying the atomic plants still in operation, however, could have a surprisingly long half-life. Businesses like Brookfield that are focused on long-term, stable cash flows could do worse.
Bloomberg 5th Jan 2018 read more »
Japan Times 5th Jan 2018 read more »
As we predicted Westinghouse has been bailed out by an asset management company. The nuclear industry will not under any circumstances, apart from huge public outcry and condemnation, be allowed to go belly up. This means that Westinghouse in Preston will be hoping to gear up to supply all new nuclear reactors here (and overseas ….even Africa is being coerced into nuclear power) with fuel and other nuclear materials. This is a scandal and it is happening in a small village called Salwick, Nr Preston, Fair Trade Town! Nuclear waste from fuel manufacturing is dumped into the Ribble, Clifton Marsh landfill and to our DNA with, according to nurses we have spoken to, ever increasing childhood cancers in the Preston area. All eyes are directed to fracking in Preston while the nuclear industry is killing people right now. Fracking is bad….this is badder on a much bigger scale.
Radiation Free Lakeland 5th Jan 2018 read more »
Toshiba has sold its U.S. nuclear power business, Westinghouse, for US$4.6 billion to a group of investment companies led by Brookfield Asset Management. The deal puts an end to a major headache for the Japanese conglomerate, which last year warned that it might have trouble surviving if it didn’t find a buyer for the nuclear power plant constructor, which it acquired in 2006 for US$5 billion. Plagued by project delays and cost overruns that came up to US$6 billion for two large-scale projects in the United States, Westinghouse filed for Chapter 11 bankruptcy protection last March. The business had by that time generated US$6.3 billion in writedowns for the parent company that resulted in Toshiba reporting a net loss of US$9.1 billion for 2016. The reasons for Westinghouse’s demise were numerous, not least among them the abundance of cheap gas thanks to shale development that weighed on demand for new nuclear power generation capacity, as well as a slowdown in U.S. demand for energy versus expectations of an increase.
Oil Price 5th Jan 2018 read more »
A $4.6 billion deal announced on Thursday to sell bankrupt U.S. nuclear plant maker Westinghouse Electric Co LLC will help its owner Toshiba Corp (6502.T) move a step closer to rebuilding its finances and focusing on smaller but more stable businesses. Toshiba does not stand to benefit directly from the sale. Proceeds will be divided among Westinghouse creditors which currently include Toshiba, but the Japanese firm plans to sell its Westinghouse-related claims by the end of March.
Reuters 5th Jan 2017 read more »