Business report

Westinghouse Electric sold to Brookfield Renewable, Cameco

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Westinghouse Electric Co., one of the world’s largest nuclear utility companies, is being sold by Brookfield Business Partners to a consortium that includes Cameco and Brookfield Renewable.

The sale of the Cranberry Township-based company is valued at $7.9 billion. Westinghouse’s current debt structure will remain in place, leaving the consortium with an estimated cost of equity of $4.5 billion, which will be split proportionately between Brookfield (approx. $2.3 billion) and Cameco (approx. $2 billion).

Westinghouse serves about half of the nuclear power generation industry in the United States and is the original equipment manufacturer for more than half of the world’s nuclear reactor fleet. The agreement will further strengthen Westinghouse’s presence in nuclear technology globally and provide a long-term path for the company’s strategic growth.

“This is the start of an exciting new chapter for the Westinghouse team and for nuclear energy,” said Patrick Fragman, Westinghouse President and CEO. “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 energy world, for the long term. We are now proud to join Brookfield Renewable and Cameco, reaffirming the important role played by Westinghouse and nuclear energy in achieving the global goals of clean energy transition and energy security.

Brookfield Renewables provides hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, with an installed capacity of 24,000 MW and a development pipeline of approximately 100,000 MW. Cameco, based in Saskatoon, Saskatchewan, is one of the world’s largest suppliers of uranium fuel for nuclear power.

“Every credible net-zero trajectory hinges on significant growth in nuclear power. It is an essential and reliable zero-carbon technology that directly replaces fossil fuels and supports renewable energy growth by providing a critical baseload to our grids. Brookfield’s partnership with Cameco will help advance the nuclear power growth the world needs for its clean energy transition,” said Mark Carney, Brookfield vice president and head of transition investments.

Combining Cameco’s expertise in the nuclear industry with Brookfield Renewable’s expertise in clean energy creates a platform for growth in the nuclear sector.

“We are seeing some of the best market fundamentals we have ever seen in the nuclear power industry. As one of the few forms of electricity generation capable of safely, reliably and affordably producing emission-free baseload power, nuclear power is becoming increasingly important in a world that prioritizes energy. ‘electrification, decarbonization and energy security,’ Tim Gitzel, President and CEO of Cameco, said.

Brookfield Renewable and other subsidiaries of Brookfield Asset Management will own a 51% interest in Westinghouse, while Cameco will own 49%. Brookfield Renewable is pursuing this transaction through the Brookfield Global Transition Fund I – the world’s largest fund focused on the clean energy transition.

The acquisition is expected to close in the second half of 2023, subject to approvals.