Energy acquisition news : Brookfield Business Partners alongside its institutional partners has struck a deal to acquire bankrupt US-based nuclear power company Westinghouse Electric Company from Japanese conglomerate Toshiba Corporation for $4.6 billion.
As per the deal terms, the Bermuda-based asset management company will purchase almost all of Westinghouse Electric’s global business as well as its affiliated debtors and debtors-in-possession. Also included in the deal are Brookfield Business Partners’ assumption of certain pension, environmental and other operating obligations of the nuclear power company.
Commenting on Brookfield acquisition of Westinghouse, Jose Emeterio Gutierrez – President and CEO Westinghouse Electric said: “Brookfield’s acquisition of Westinghouse reaffirms our position as the leader of the global nuclear industry.
“Our transformation and strategic restructuring process is creating a stronger, stable, and more streamlined global Westinghouse business, for the benefit of our customers and employees.”
The Brookfield acquisition of Westinghouse, which will be subject to approval from the US Bankruptcy Court, regulatory approvals and customary closing conditions, is anticipated to be closed in the third quarter of this year.
Last year in March, Westinghouse Electric and some of its subsidiaries and affiliates filed for Chapter 11 bankruptcy protection with the US Bankruptcy Court for the Southern District of New York.
According to Reuters, Westinghouse Electric applied for bankruptcy protection after a couple of nuclear power plants designed and constructed by it in the US Southeast had crossed well over budget in tunes of billions of dollars in comparison to their fixed costs agreed upon in the contracts.
The bankruptcy of Westinghouse Electric though is not expected to impact the operations of the nuclear power company in Europe, Asia and in the Middle East and Africa regions.
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