Toshiba acquires Shaw Group’s stake in Westinghouse

Toshiba Corp. (SEA: TOS) on Oct. 10 said it will acquire The Shaw Group (NYSE: SHAW)’s share in Westinghouse Electric Co. Toshiba said it received notice from The Shaw Group stating that Nuclear Energy Holdings, Shaw Group’s special purpose subsidiary, exercised its put option and will sell the 20 percent holding in Westinghouse that it owns.

The put option was exercised automatically on Oct. 6, 2012 under the terms of the put option agreement, for cash settlement 90 days thereafter, in January 2013. Toshiba will purchase the shares at a price of approximately 125 billion yen ($1.6 billion) by immediately available cash and/or loans.

Westinghouse is currently constructing four 1,154 MWe AP1000 nuclear reactors in the U.S. and an additional four in China. Shaw Group is working with Westinghouse on the AP1000 projects in the U.S. and China, and has already agreed to see all outstanding orders through to a successful completion.

After Shaw Group’s exercise of the put option, Toshiba will select future plant engineering partners on a project-by-project basis.

Toshiba also said it has received interest from potential partners regarding the acquisition of a stake in Westinghouse. Toshiba said it is open to talks on the condition that Toshiba retains a majority stake, can expect to share long term business prospects and strategies with partners, and secure positive synergies.

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