Canada-based Cameco announced this week that the acquisition of Westinghouse Electric Company (Westinghouse) in a strategic partnership with Brookfield Asset Management, alongside its publicly listed affiliate Brookfield Renewable Partners, has closed.

Cameco now owns a 49% interest and Brookfield owns the remaining 51% in Westinghouse, one of the world’s biggest nuclear services businesses.

“Since first announcing this deal a year ago, we believe the business prospects for Westinghouse have significantly improved. The sustained and positive momentum for nuclear energy has been undeniable as countries and companies around the world strive to meet their net-zero commitments and growing energy needs through clean and secure supply,” said Cameco president and CEO Tim Gitzel.

“Cameco’s 35 years of experience in uranium mining and nuclear fuel production combined with Brookfield’s expertise in clean energy is expected to provide a solid foundation for Westinghouse’s continued success in the provision of nuclear plant technologies, products and services, and to create a powerful platform for strategic growth across the nuclear sector. The partners, together with Westinghouse, are well-positioned to provide global solutions for the increasing need for secure, reliable and emissions-free baseload power.”

Gitzel said that over the coming weeks, Cameco and Brookfield would conduct their first Westinghouse board meeting focused on its strategic business plan.

The total enterprise value of $7.9-billion was adjusted for working capital balances at the close, resulting in a final enterprise value of $8.2-billion. Westinghouse has $3.8-billion in outstanding debt commitments, for which it maintains responsibility after closing and which reduces the equity cost of the acquisition.

Cameco said that, to finance its 49% share of the purchase price, equating to $2.1-billion, the company used $1.5-billion of cash and drew the full amount of both $300-million tranches of the term loan put in place concurrently with the execution of the acquisition agreement, and which mature two years and three years from the date of close. The $280-million bridge commitment secured concurrently with the acquisition agreement was not required to complete the transaction and had been terminated.

“We expect this acquisition will enhance Cameco’s participation in the nuclear fuel cycle at a time when there is tremendous growth on the horizon for our industry. Globally, policy makers are focused on how to accelerate investment in the expansion of the nuclear reactor fleet by removing barriers and strengthening the nuclear fuel supply chain needed to allow nuclear power to deliver on its promise to help provide a clean and secure energy future,” said Gitzel.