Cameco and Brookfield Renewable agree to US$7.9B Westinghouse nuclear services buy

Canada’s largest uranium producer Cameco (TSX: CCO) has announced a significant expansion into the nuclear services sector after agreeing to buy U.S.-based Westinghouse Electric with Brookfield Renewable Partners (NYSE: BEP) in a US$7.9 billion deal, the companies announced on Tuesday.

Brookfield Renewable and its institutional partners will own a 51% interest in Westinghouse, while uranium fuel supplier Cameco will own 49%.

“The partnership of Brookfield and Cameco will help drive forward the growth of nuclear power the world needs for its clean energy transition,” said Brookfield vice chair and head of transition investing Mark Carney in a statement.

The deal combines Cameco’s expertise in the nuclear industry with Brookfield Renewable’s expertise in clean energy and positions atomic power at the heart of the energy transition. It also creates a platform for strategic growth across the nuclear sector.

Among the terms of the deal, Westinghouse’s existing debt structure will remain in place, leaving an estimated US$4.5 billion equity cost to the consortium, subject to closing adjustments. This equity cost will be shared proportionately between Brookfield and its institutional partners (about US$2.3 billion) and Cameco (about US$2.2 billion).