Cameco Acquires Westinghouse Eletric for $7.9bn

Following the company’s strategic partnership with Brookfield Renewable Partners, the Uranium fuel supplier Cameco has recently acquired Westington Electric for $7.9 billion. Shared proportionately amongst the acquiring partners, there will be an estimated equity cost of approximately $4.5 billion. The acquisition deal is structured with Cameco owning 49% of the company and Brookfield Renewable owning 51% respectively.

Westington Electric is a nuclear power company based in Pennsylvania, who have paved the way for carbon free energy through innovative technological innovation. The acquisition is expected to further enhance production of nuclear energy, as uranium fuel is an integral component in its manufacturing. Furthermore, as the United States begins to slowly phase out their dependence on fossil fuels, demand for alternative sources is expected to climb exponentially. This demand is driven by a variety of factors; notably the pressing issue of climate change and the geopolitical conflict between Russia and Ukraine shocking supply chains worldwide.

The pursuit of nuclear energy is also government supported, and has been encouraged through the provision of federal incentives. In addition to nuclear energy production, Westington Electric is also renowned for its nuclear technology, which is utilized in nearly half the world’s nuclear reactors. Russian nuclear technology is currently employed in over 30 Western nuclear reactors, so the acquisition aspires to broaden supplier options for Western Nuclear Power Plants.

By combining forces, the entities will be able to capitalize on this demand whilst simultaneously diverting dependence away from Russian resource reserves.

Written by: Nathan Pearman

Source: Covington