Toshiba sells Westinghouse nuclear unit in $4.6 billion deal

• 6 years ago (2018-01-05)
• David Flin

North America 1021 Nuclear 659

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Westinghouse Electric, the US nuclear unit of the Japanese firm Toshiba, has been acquired by the Canadian asset manager Brookfield Business Partners in a deal valued at about $4.6 billion. Westinghouse Electric Co. declared bankruptcy protection early last year.

The agreement, pending the approval of bankruptcy court, is expected to close in the third quarter of 2018.

Westinghouse said that the deal with Brookfield doesn’t involve cash, but includes the assumption of a number of pension, environmental, and operating obligations. The deal is being financed with about $1 billion of equity and $3 billion of long-term debt. Brookfield may bring in other institutions to take some of the investment.

The acquisition came one day after an agreement dealing with a construction projects for two nuclear reactors in South Carolina, USA. South Carolina Electric & Gas Co. had abandoned construction of two reactors at the V.C. Summer Nuclear Station, giving the plight of Westinghouse as the lead reactor as the reason for the abandonment.