The UK Competition and Markets Authority (CMA) announced plans to launch an investigation into the previously announced Cameco and Brookfield Renewable Partners’ $7.87bn joint acquisition of nuclear power company Westinghouse Electric.
The British competition watchdog said that it is considering if the deal would create a relevant merger situation under the merger provisions of the Enterprise Act 2002.
Besides, the regulator will investigate whether the proposed transaction would lead to a significant reduction in competition within any market or markets in the UK for services or goods.
For helping with its assessment, the CMA is seeking comments on the proposed acquisition from interested parties. The last date for filing the comments is 16 August 2023.
The dates for the deadline for the phase 1 decision and launch of the merger inquiry are yet to be confirmed by the anti-trust regulator.
In October 2022, Cameco and Brookfield Renewable Partners alongside its institutional partners agreed to acquire Westinghouse Electric from Brookfield Business Partners and its institutional partners.
Following the closing of the deal, Brookfield Renewable Partners along with its institutional partners will own a stake of 51% in Westinghouse Electric. The remaining stake of 49% will be held by Cameco, a Canadian supplier of uranium fuel for nuclear energy.
Westinghouse Electric was acquired by Brookfield Business Partners, which is the industrials and services division of Brookfield Asset Management, in 2018.
Based in the US, Westinghouse Electric is said to service nearly 50% of the nuclear power generation industry. It is also claimed to be the original equipment manufacturer (OEM) for over 50% of the worldwide nuclear reactor fleet.
The transaction, subject to Brookfield Business Partners’ unitholder approval, approvals from regulators and other customary conditions, is expected to be completed in the second half of this year.
