Brookfield Asset Management plans to acquire Westinghouse Electric for 4.6 billion USD

Westinghouse ElectricA subsidiary of Canadian company Brookfield Asset Management plans to acquire Westinghouse Electric, the bankrupt company owned by Toshiba Corp, for 4.6 billion USD.

On Thursday, Brookfield Business Partners LP said it and its institutional partners would fund the deal with 1 billion USD of equity and a 3 billion USD long-term loan. This is the first investment in nuclear power of the company. The buyers will also have to cover Westinghouse’s underfunded pension fund.

The deal is expected to close in the third quarter of the year, after approval by regulators and the US State Department.

The Brookfield Group is among the world’s largest investors in stable, long-term assets such as utilities, real estate, energy and infrastructure.

Westinghouse is one of the world’s leading suppliers of nuclear fuel and serves one way or another 80% of the 450 commercial reactors worldwide. In 2015, it had 3.1 billion USD in revenue.

After agreeing to build two reactors in the US under fixed price contracts, the company lost a lot. The projects exceeded the bill by billions, and Westinghouse filed for bankruptcy in March 2017 to avoid their execution.

Toshiba suffered a loss of 6.4 billion USD due to bankruptcy.