"Brookfield's acquisition of Westinghouse reaffirms our position as the leader of the global nuclear industry", Westinghouse Chief Executive Officer Jose Emeterio Gutierrez said Thursday in a statement.
Brookfield Business Partners said it expects to fund the purchase of 100 per cent of Westinghouse through a combination of US$1 billion of equity, $3 billion of long-term debt and the assumption of certain obligations. Toshiba did not immediately respond to requests for comment.
The effect of the deal on the Westinghouse business in the United Kingdom is yet to become clear but Brookfield has a track record of investing in and developing "long-life, high quality assets".
Cyrus Madon, CEO of Brookfield Business Partners said today: "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".
Those two business lines generated combined cash flow of $403 million on revenue of about $3.1 billion in Westinghouse's 2015 financial year, according to court records.
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Despite problems with two US nuclear projects, Brookfield says the company is a leader in providing nuclear infrastructure and operates within a complex regulatory and licensing environment requiring depth of expertise and capability.
The demise of Westinghouse was a major setback for the country's nuclear industry, potentially dooming new nuclear build in the U.S. Problems with its AP1000 nuclear reactor models led to two major nuclear projects falling behind schedule and mounting costs.
The firm received orders for the construction of 4 nuclear plants. A SC project known as V.C. Summer was abandoned in July.
Westinghouse has joined a consortium bidding to provide nuclear power in Saudi Arabia, one of the biggest new markets in the world. A portion of Brookfield Business Partners' investment may be syndicated to other institutional investors.
The Japanese conglomerate first revealed plans to sell Westinghouse late a year ago, after heavy delays to two of its nuclear projects drove the troubled engineering group to file for Chapter 11 bankruptcy. Get your FREE trial to Buyouts!