(mlive)– Brookfield Business Partners announced Thursday, Jan. 4 that it had agreed to buy Westinghouse Electric, Toshiba’s nuclear unit, in a deal valued at $4.6 billion.
The Associated Press reports this deal comes on the heels of Westinghouse Electric Co., a nuclear unit of Toshiba, declaring for bankruptcy in 2017. This left several of its nuclear projects in question, which Brookfield is attempting to clear up as the acquisition was announced.
This includes two failed nuclear reactor projects in South Carolina, which left thousands jobless and a site very much in flux. A.P. reports Brookfield proposed to pay $1.3 billion in refunds to utility customers hit by this failure that was blamed on Westinghouse Electric’s owners.
Brookfield said in a news release the $4.6 billion deal includes $1 billion of equity and $3 billion of long-term debt financing with the rest covering “pension, environmental and other operating obligations.” The deal does not include any cash, so that lines up with the covering of pensions and other operating obligations.
The company, a subsidiary of Canada’s Brookfield Asset Management, described the Westinghouse unit as a world leader of nuclear power plant service provider. Reuters reports that Westinghouse provides service to about 80 percent of the planet’s 450 commercial reactors.
“Westinghouse is a high-quality business that has established itself as a leader in its field, with a long-term customer base and a reputation for innovation,” Cyrus Madon, Brookfield CEO, said in the release.
“We look forward to bringing our significant expertise and reputation as a long-term owner and operator of critical infrastructure in the U.S. and globally, as well as our deep facilities management capabilities, to enhance the Company’s position as a leading global infrastructure services provider to the power generation industry.”
The deal, still pending approval of U.S. Bankruptcy Court, is expected to close in the third quarter of this year, according to Brookfield. Reuters reports Westinghouse has its eyes on getting out of bankruptcy as soon as March of this year.
This acquisition comes a year after Brookfield took control of TerraForm Global and TerraForm Power, two renewable energy projects that were being run by a company also in bankruptcy.