UK’s Competition and Markets Authority (CMA) has approved the acquisition of Westinghouse Electric by Cameco, Brookfield Renewable Partners and other partners for $7.87bn.
The regulatory approval follows an investigation by the UK CMA into the previously announced joint acquisition of Westinghouse Electric, launched in August this year.
The British competition watchdog said if the proposed transaction would create a relevant merger under the merger provisions of the Enterprise Act 2002.
Also, the regulator investigated whether the proposed transaction would significantly affect the competition within any market or markets in the UK for services or goods.
CMA accepted comments on the proposed acquisition until 16 August 2023.
After its review, the UK competition watchdog approved the proposed joint venture by Cameco and Brookfield to acquire the US-based nuclear power company.
In October last year, Cameco and Brookfield Renewable Partners, together with its institutional partners, agreed to acquire Westinghouse from Brookfield Business Partners and others.
Under the terms of the agreement, Brookfield Renewable Partners and its institutional partners will have a 51% stake, and Cameco will have the remaining 49% stake in Westinghouse Electric.
The transaction is expected to close around 7 November 2023, subject to the satisfaction of other customary closing conditions.
Based in Canada, Cameco is a large-scale uranium company that operates uranium mines in North America and Kazakhstan, including McArthur River-Key Lake and Cigar Lake operations.
Cameco intends to finance its share of the acquisition using a $600m US term loan, which will be drawn down at closing, along with cash in hand.
The company said that it will not use the $280m US bridge commitment, which has been finalised simultaneously with the acquisition agreement and will terminate the commitment.
Westinghouse Electric is a US-based nuclear power company and original equipment manufacturer (OEM) said to service nearly 50% of the global nuclear power generation sector.
With a workforce of nearly 9,000, the company has four primary business lines operating plant services, nuclear fuel, energy systems, and environmental services.
In 2018, Brookfield Business Partners, the industrials and services unit of Brookfield Asset Management, bailed out Westinghouse Electric from bankruptcy.
