Toshiba To Sell Its Nuclear Division

Toshiba To Sell Its Nuclear Division

A subsidiary of Canada's Brookfield Asset Management plans to acquire Westinghouse Electric, the bankrupt nuclear services company owned by Toshiba, for $4.6 billion.

Finally, CIBC Asset Management Inc raised its stake in shares of Brookfield Business Partners L.P. Limited Partnership Units by 197.5% during the third quarter.

"Presently, discussions with Westinghouse Electric Company is in progress to arrive at a viable project proposal for setting up six nuclear power reactors", Minister of Atomic Energy and Space, Dr. Jitendra Singh said in Parliament.

"Brookfield's acquisition of Westinghouse reaffirms our position as the leader of the global nuclear industry", Westinghouse President & CEO José Emeterio Gutiérrez said.

Westinghouse says the deal will benefit its customers and employees.

Brookfield has a plan to reorganize its bankrupt USA assets as well, according to a person with knowledge of the sale. The deal still needs approval from USA regulators and bankruptcy court. The vehicle was created in 2016, shortly after Brookfield Capital Partners IV, the Toronto investor's fourth mid-market PE fund, was closed at US$4 billion. Also in September 2017, reports emerged that a handful of companies were eyeing bids for the bankrupt firm. Toshiba did not immediately respond to requests for comment.

Brookfield Business Partners said in a statement on Thursday that it and institutional partners would use $1 billion of equity and $3 billion of long-term debt financing to buy the Pittsburgh-based business, its first investment in nuclear power.

Since filing for bankruptcy, Westinghouse said it planned to get out of the business of building new reactors and would, instead, focus on servicing them, including decommissioning work.

Since then, reports have surfaced that President Donald Trump's administration is encouraging Saudi Arabia to consider bids by Westinghouse and other USA companies to build reactors - a politically controversial bid considering previous US agreements prohibited the enrichment of uranium.

One of Westinghouse's unfinished US projects, known as Vogtle in Georgia, will continue with Southern Co. replacing the company as the project manager.

Brookfield won an auction to propose the best possible offer for the company, and has a plan to reorganize its bankrupt US assets as well, a person familiar with the offer told Bloomberg.

Westinghouse had backed out of the two US projects after it filed for Chapter 11, setting off a chain of events for the utilities involved. The deal puts an end to a major headache for the Japanese conglomerate, which a year ago warned that it might have trouble surviving if it didn't find a buyer for the nuclear power plant constructor, which it acquired in 2006 for US$5 billion.