https://www.miningweekly.com
Business|electrification|Energy|Nuclear|Power|SECURITY|Services|Technology|Equipment|Power Generation|Power-generation
Business|electrification|Energy|Nuclear|Power|SECURITY|Services|Technology|Equipment|Power Generation|Power-generation
business|electrification|energy|nuclear|power|security|services|technology|equipment|power-generation|power-generation-industry-term

Cameco partners with Brookfield to buy Westinghouse for $7.9bn

An image of Cameco CEO Tim Gitzel

Cameco CEO Tim Gitzel says the world is witnessing some of the best market fundamentals ever seen in the nuclear energy sector.

12th October 2022

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Canadian uranium miner Cameco on Monday announced that it would partner with clean energy investor Brookfield Renewable to buy nuclear services group Westinghouse for an enterprise value of $7.88-billion.

Brookfield Renewable, with its institutional partners, would own a 51% interest and Cameco would own a 49% stake in Westinghouse, which services about half the nuclear power generation sector and is the original equipment manufacturer to more than half the global nuclear reactor fleet.

NYSE-listed Brookfield Business Partners bought Westinghouse out of bankruptcy in 2018.

"We’re witnessing some of the best market fundamentals we’ve ever seen in the nuclear energy sector,” said Cameco CEO Tim Gitzel.

Buying Westinghouse would create a platform for growth across the nuclear value chain, he added.

Westinghouse’s existing debt structure would remain in place, leaving an estimated $4.5-billion equity cost to the consortium.  Brookfield and its institutional partners would pay $2.3-billion for the deal and Cameco $2.2-billion. Brookfield Renewable is pursuing this opportunity through the Brookfield Global Transition Fund I (BGTF I), which is the biggest fund in the world focused on the energy transition. Brookfield Renewable would invest about $750-million to acquire a 17% interest in Westinghouse, which would be funded through normal course funding initiatives, including asset level upfinancings and asset recycling.

Cameco has available liquidity and committed financing facilities to support the transaction. However, the uranium miner said it would be pursuing a permanent financing mix of capital sources (cash, debt and equity) to preserve its balance sheet and ratings strength, while maintaining its liquidity.

In a separate announcement, Cameco said that it would raise $650-million on a bought-deal basis. The company entered into an agreement with a syndicate of underwriters, led by CIBC Capital Markets and Goldman Sachs & Co, pursuant to which the underwriters would purchase 29 615 000 common shares at $21.95 each.

The proceeds would be used to partially fund its share of the acquisition of Westinghouse.

MARKET TRENDS
Brookfield vice chairperson and head of transition investing Mark Carney said that “every credible net-zero pathway relies on significant growth in nuclear power”.

“It is an essential, reliable zero-carbon technology that directly displaces fossil fuels and supports the growth of renewables by providing critical baseload to our grids. The partnership of Brookfield and Cameco will help drive forward the growth of nuclear power the world needs for its clean energy transition.”

Driven by electrification, decarbonization and energy security benefits, an estimated 400 GW of additional nuclear capacity would be needed by 2050.

The consortium states that more than 50 GW of plant extensions have been announced to date and more than 60 GW of new-build reactors are expected between 2020 and 2040.

Edited by Creamer Media Reporter

Comments

Latest News

Ironveld smelter
Ironveld ramp-up slower than expected
28th March 2024 By: Darren Parker

Showroom

GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 
Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.103 0.137s - 92pq - 2rq
Subscribe Now