ibusinesslines.com
ibusinesslines.com December 16, 2018


Toshiba gets rid of Westinghouse for $4.6 billion

12 January 2018, 09:10 | Kelvin Horton

Toshiba gets rid of Westinghouse for $4.6 billion

The Vogtle Unit 3 and 4 site being constructed by primary contractor Westinghouse a business unit of Toshiba near Waynesboro Georgia is seen in an aerial

The $4.6-billion acquisition of Westinghouse Electric Co.by Brookfield Business Partners LP has come just in time for India, which has chose to push ahead with its planned collaboration with the formerly Toshiba-owned company, for the construction of six nuclear reactors.

Brookfield Business Partners was an investor in the bankrupt power producer that emerged from Chapter 11 and became Vistra Energy Corp.

The deal would be funded with approximately $1 billion of equity, approximately $3 billion of long-term debt financing and the balance by the assumption of certain pension, environmental and other operating obligations.

Officials at Brookfield Business Partners said on Thursday they would acquire Westinghouse for 4.6 billion dollars. Toshiba did not immediately respond to requests for comment.


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. And in November, Brookfield Property Partners offered to buy the remaining shares in General Growth Properties, adding to a large stake it purchased to bring the mall owner out of bankruptcy. Toshiba bought the company for $5.4 billion in 2006, aiming to capitalise on what was then expected to be a renaissance in the U.S. nuclear sector.

One of Westinghouse's unfinished USA projects, known as Vogtle in Georgia, will continue with Southern Co replacing the company as the project manager.

Westinghouse had backed out of the two US projects after it filed for Chapter 11, setting off a chain of events for the utilities involved. Instead, delays and overruns led to troubles that left Westinghouse's former parent, Toshiba Corp., fighting for survival a year ago after writing down the value of the unit by billions.

Toshiba said Friday its nuclear power unit, Westinghouse Electric, will move toward rehabilitation under USA bankruptcy procedures. Four research analysts have rated the stock with a buy rating, Brookfield Business Partners L.P. Limited Partnership Units now has a consensus rating of "Buy" and a consensus price target of $29.66.



Other News

Trending Now

Packers reportedly to consider former Bills GM Doug Whaley for same role
While it's not fair to say the lack of success in Green Bay is all his fault. his piece of the pie is definitely the biggest. Offensive coordinator Edgar Bennett? "The part that no one wants to talk about is the personal aspect of it".

Bayliss will not coach England past 2019
England's Mark Stoneman avoids a high delivery from Australia's Mitchell Starc during their Ashes cricket test match in Sydney. Things were no better for Stoneman. "There's so much cricket now it is hard to be playing in all formats", said Bayliss.

French president to visit China next week
Since becoming president he has also accused one Russian Federation channel of sowing disinformation about him via its website. He also suggested that there may be spending caps on how much people can spend on sponsored content during election periods.

Commercial property values to increase up to 50 per cent: BC Assessment
The highest assessed property for Vancouver Island and the Gulf Islands is an acreage on James Island valued at $5.4-million. Even clients who are dual-income earning professionals have been largely priced out of the single-family market, he added.

Nissan unveils technology to control cars with brain signals
This concept appears to be a type of co-driving system, where neither the driver nor the vehicle completely dominates operations. Nissan is working on "brain-to-vehicle" technology that will "enable vehicles to interpret signals from the driver's brain".

Rich Hobson, longtime Roy Moore aide, announces run for Congress
Jones defeated Republican Roy Moore in a special election to take the seat once held by Attorney General Jeff Sessions . Smith, who was Minnesota's lieutenant governor, was appointed to fill the seat of Democratic Sen.

Mohamed Salah reacts to Philippe Coutinho's move to Barcelona — EXTRA TIME
Jordan Henderson and Alberto Moreno were both absent as they continue their respective rehabs while Nathaniel Clyne is still AWOL. With a huge clash with Manchester City looming large, Jurgen Klopp will be boosted by Mohamed Salah's return to training today.