Westinghouse deal will overpower immediate fallout

Brookfield Renewable Partners LP

12/10/2022 18:27

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Robert Cyran
       NEW YORK, Oct 12 (Reuters Breakingviews) - Brookfield
Renewable and uranium miner Cameco are teaming up to buy the
company for $7.9 bln. Servicing and decommissioning nuclear
plants generates steady cash flow, but the market reaction was
toxic. There’s plenty of upside in Eastern Europe and the energy
transition, however. 
    Full view will be published shortly.
    Follow @rob_cyran on Twitter
    CONTEXT NEWS 
    Uranium producer Cameco and investment fund Brookfield
Renewable Partners said on Oct. 11 that they agreed to buy
Westinghouse Electric, which services and provides designs for
nuclear power plants, for $7.9 billion, including debt.
Brookfield Business Partners bought the company in 2018, after
Westinghouse filed for bankruptcy protection from creditors the
previous year.
    Brookfield Renewable, along with its institutional partners,
will own 51% while Cameco will own 49%. The equity is valued at
about $4.5 billion.
    Westinghouse generated $710 million of EBITDA in the year
ending June 30.
    Brookfield Business Partners said it expects proceeds from
the deal to equal six times its invested capital when combined
with distributions received to date.
 (Editing by Jeffrey Goldfarb and Sharon Lam)
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