Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Brookfield Business Partners inks deal to sell Westinghouse; check details

Published 2022-10-12, 05:56 p/m
Updated 2022-10-12, 10:45 p/m
Brookfield Business Partners inks deal to sell Westinghouse; check details

Brookfield Business Partners inks deal to sell Westinghouse; check details

Highlights

  • Brookfield agrees to sell Westinghouse Electric Company amid rise in interest in nuclear power sector.

  • Westinghouse will be sold for an estimated US$8 billion to Cameco Corporation and Brookfield Renewable Partners.

  • Brookfield had acquired Westinghouse out of bankruptcy in 2018.

American clean energy investor Brookfield Business (TSX:BBUC) Partners (NYSE: BBUC, BBU; TSX: BBUC, BBU.UN) has announced to sell its nuclear technology services operation, Westinghouse Electric Company. The acquisition agreement is being carried on collaboratively with its institutional partners, collectively known as Brookfield.

According to the official release, Westinghouse will be sold to a strategic consortium that is headed by Cameco Corporation and Brookfield Renewable Partners for an estimated US$8 billion in total enterprise value. This would include proceeds from the disposition of a non-core asset that is expected to be received before the transaction closes.

The transaction's completion would be contingent on several factors, including Brookfield Business Partners’ unitholder approval, governmental approvals, and several other customary conditions. The transaction is anticipated to be closed in the second half of 2023.

What did Brookfield’s management say?

The release further stated that Westinghouse stands as one of the global providers of mission-critical technologies, services, and products to the nuclear power sector. Back in 2018, when Westinghouse was struggling with bankruptcy, Brookfield bought the company.

Details of the acquisition This transaction was examined by the Governance and Nominative Committee of Brookfield Business Partners’ general partner, which is made up of independent directors. Meanwhile, RBC (TSX:RY) Capital Markets, BMO (TSX:BMO) Capital Markets, and Weil, Gotshal & Manges LLP are serving as Brookfield's financial and legal advisors, respectively. The independent committee is being financially advised by TPH & CO., the energy division of Perella Weinberg Partners, and legally counselled by Stikeman Elliott LLP.

As per the company’s announcement, the estimated revenues for Brookfield would be equivalent to around six times its invested capital, a 60% IRR, and a total profit of US$4.5 billion when combined with distributions already received. Additionally, with the sale of its 44% stake in Westinghouse, Brookfield Business Partners anticipates receiving around US$1.8 billion in cash, with the remaining amount going to its institutional investors.

Read more on Kalkine Media

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.