By Editors of Power Engineering
Westinghouse Electric, which fell into bankruptcy after losing billions on its nuclear business, has found a buyer, the Wall Street Journal reported.
Brookfield Business Partners, LP, a Canadian company, along with other industrial partners have reached a deal to buy the company’s assets for $4.6 billion.
Sources familiar with the deal said that while the buyer is looking to expand into servicing existing power plants and decommissioning retired nuclear plants, there is no plans to continue Westinghouse’s former nuclear construction division.
Westinghouse Electric, a division of Toshiba, filed for chapter 11 bankruptcy protection in March of last year due to $6 billion in losses from its nuclear division. Toshiba blamed the loss on an overestimation of projects at CB&I Stone & Webster, which Westinghouse acquired in 2015, and dwindling global demand for nuclear development.
However, the Wall Street Journal said work on the world’s 400 existing and retired plants could remain a stable business.
Westinghouse drew “considerable interest” from private equity firms during the bidding process.
Westinghouse was founded in 1886 in a bid to promote alternating current electricity over Thomas Edison’s direct current technology, and designed and built the world’s first commercial nuclear power plant in the 1950s.
The nuclear division was sold off in 1998 and eventually purchased by Toshiba in 2006 for $5.4 billion.