Saskatoon’s Cameco partners in acquisition of nuclear giant Westinghouse

Saskatoon-based Cameco Corporation is acquiring a minority stake in nuclear power giant Westinghouse Electric Company, in a partnership with Brookfield Renewable and others.

Westinghouse is one of the largest nuclear services business, according to a joint press release.

“As one of the few forms of electricity generation capable of safely, reliably and affordably producing emissions-free, baseload power, nuclear energy is becoming increasingly important in a world that prioritizes electrification, decarbonization and energy security,” said Tim Gitzel, President and CEO of Cameco.

Gitzel says the company expects demand for nuclear fuel from Westinghouse’s nuclear plant operations will generate a strong revenue stream for Cameco.

“This transaction fits perfectly within Cameco’s strategy and is expected to increase our ability to meet the growing needs of existing and new customers at a time when origin and security of supply is of significant concern.”

Gitzel said the acquisition was strategic.

He said that countries were looking to “build out their nuclear reactor fleet” but were also searching for a reliable power supply.

“This is highlighted by the Russian invasion of Ukraine. Russia has been a very important provider of nuclear fuel and nuclear fuel services throughout the global reactor base. But with Russia’s action in Ukraine we now have a western world that … looking to procure western sources of enrichment, conversion, uranium, and of course western sources of fabricated fuel. “

He said many countries and organizations around the world have been looking to lower their carbon footprint.

“There is a lot of instability in the world energy landscape and many countries have to take a hard look at where they get their fuel. More than ever the world is looking for stable, reliable, and politically dependable fuel supply. I believe we’re witnessing a fundamental change that will alter the way countries approach their energy needs going forward,” Gitzel said.

“We believe this transaction positions us extraordinarily well to continue to participate in the momentum that is building for nuclear power.”

According to the partners, the enterprise value for Westinghouse is $7.875 billion.

The company filed for bankruptcy protection in 2017 after cost overruns in the construction of two nuclear facilities hobbled its parent company Toshiba. In 2018 Toshiba sold its shares to Brookfield partners, pulling it out of bankruptcy.

“Westinghouse has successfully refocused on providing core services to the nuclear industry and is ready for the next phase of growth. The business aligns well with our existing portfolio, delivering highly contracted and dependable revenue by serving customers who operate critical clean energy assets. Partnering with Cameco brings deep nuclear sector expertise, alongside our knowledge of energy markets and global customer base,” Connor Teskey, CEO of Brookfield Renewable, said.

According to details of the agreement, Brookfield and its partners will own 51 per cent interest in Westinghouse and Cameco will have 49 per cent.

With files from Reuters