Cameco announces plans for significant purchase

By Doug Lett

Major New Step

Cameco part of group buying Westinghouse Electric

Oct 11, 2022 | 5:14 PM

The company that owns and operates uranium mines in northern Saskatchewan has announced a major step into the nuclear value chain.

Cameco Corporation has announced it is forming a strategic partnership with Brookfield Renewable Partners to acquire Westinghouse Electric Company, one of the world’s largest nuclear services businesses.

Brookfield will own a 51 per cent interest, while Cameco will own 49 per cent.

In a news release, Cameco said Westinghouse services around half the nuclear power generation facilities in the world, so the deal offers Cameco significant opportunities.

“We’re witnessing some of the best market fundamentals we’ve ever seen in the nuclear energy sector,” said Tim Gitzel, President and CEO of Cameco.

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He said nuclear energy is becoming more important in a world where companies and countries are looking to reduce reliance on fossil fuels, adding the deal “is expected to create a platform for growth across the nuclear value chain.”

In it’s news release, Cameco said nuclear power is experiencing a resurgence around the world with more than 20 countries across the Americas, Europe, the Middle East and Asia pursuing new projects or plant extensions.

“We expect the recurring demand for Westinghouse’s operating plant services and nuclear fuel will generate a strong revenue stream and add stable cash flow to complement Cameco’s existing uranium and fuel services business,” said Gitzel.

Cameco owns several uranium mines in northern Saskatchewan, including McArthur River and Cigar Lake, along with a mill at Key Lake, and employs over 1300 people at its operations, over half of them from the north.

The company is one of the largest employers of Indigenous people in the country, and is also one of the world’s largest suppliers of uranium fuel for nuclear energy, along with refining and conversion facilities.

The deal still needs regulatory approval, and is expected to be approved in the second half of 2023. Cameco said the total enterprise value for Westinghouse is over $7.87 billion dollars. However, Westinghouse’s debt will remain in place, so Cameco’s share of the purchase will be around $2.2 billion, and Brookfield’s share will be around $2.3 billion.

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panews@pattisonmedia.com

Twitter: @princealbertnow