Saskatchewan-based uranium mining company Cameco has announced the successful acquisition of Westinghouse Electric Company, a major player in the nuclear services industry.
This strategic partnership, in collaboration with Brookfield Asset Management, solidifies Cameco’s position in the nuclear sector.
Cameco now holds a 49 per cent stake, while Brookfield owns the remaining 51 per cent of Westinghouse, a leading global nuclear energy generation and services company. Westinghouse’s adjusted enterprise value is US$8.2 billion. Cameco was able to acquire the share for US$2.2 billion after taking into account Westinghouse’s US$3.8 billion in outstanding debt commitments.
“This is a historic day for Cameco as we join Brookfield to complete our purchase of Westinghouse,” said Tim Gitzel, president and CEO of Cameco. “The sustained and positive momentum for nuclear energy has been undeniable as countries and companies around the world strive to meet their net-zero commitments and growing energy needs through clean and secure supply.”
Cameco brings over 35 years of experience in uranium mining and nuclear fuel production, while Brookfield, known for its expertise in clean energy, is expected to complement the venture. This collaboration aims to fortify Westinghouse’s position in providing nuclear plant technologies, products and services, as well as fostering strategic growth in the nuclear sector.
Veronica Baker, Cameco’s external communications manager, says the acquisition marks a pivotal moment for the company.
“In Saskatchewan, we are known as a mining company, but this shows that we are a global player in nuclear fuel,” Baker said.
“This growth that we will see with Westinghouse is adding a different layer to what we are already doing and it expands our work throughout the full nuclear fuel cycle.”
George Tannous, a professor of corporate finance at the University of Saskatchewan, said “both the company and the province will benefit from this deal.”
“Cameco is a major employer and a huge economic factor in the province,” Tannous said. “Certainly, any positive development for Cameco would mean a positive development for the province.”
With this acquisition, Cameco says it aims to capitalize on the increasing demand for nuclear power, driven by the urgent need to address climate and energy security challenges. The company’s investment in Westinghouse is expected to bolster its position in the nuclear fuel cycle, offering a wider array of solutions to customers across the industry.
As Westinghouse remains a separate entity, retaining its leadership, staff and operations, a new board comprising three Cameco members and three Brookfield members will oversee its strategic direction. Opportunities for future co-operation between Cameco and Westinghouse are on the horizon, presenting potential benefits for existing and prospective clients.
With a strong foundation in place, Cameco is poised to leverage this strategic acquisition to further advance the clean and secure energy future through nuclear power.