Canada’s Cameco to Buy 49% Stake in Westinghouse Electric

Saskatchewan-based uranium miner Cameco announced it is buying a 49% stake in nuclear-power giant Westinghouse Electric Co., teaming up with Toronto-based Brookfield Renewable Partners in a deal valuing the business about $8 billion. Brookfield Renewable will own the remaining 51% stake in Westinghouse. Brookfield Business Partners had bought Westinghouse in 2018 as part of the nuclear company’s bankruptcy reorganization.

The deal is the latest indication that governments and companies regard nuclear energy as key in the fight against climate change. While some clean-energy advocates continue campaigning for the end of nuclear power, proponents say it will be challenging to wean power grids off fossil fuels without it.

Brookfield CEO Teskey said; “This is our entry into the nuclear-power segment, which is we believe a critical technology for global grids to achieve net zero,”

Cameco, North America’s largest uranium miner, had struggled since the Fukushima nuclear disaster in 2011 had made nations around the world to reconsider nuclear power. While the company’s shares have surged by about 190% since the beginning of 2020, Chief Executive Officer Gitzel said earlier this year that he wouldn’t soon crank up production to chase “mythical” market demand.

Buying Westinghouse will give the company more direct access to customers that will need uranium. “We like to think of ourselves as more than just mining and this is just an extension of that. We know what they do, and their business is very complementary to what we do.” Gitzel said.

Cameco committed $2.2 billion in equity toward the acquisition. Brookfield Renewable’s $2.3 billion equity stake will be funded by the Brookfield Global Transition Fund, the company and the fund’s limited partners.

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