Brookfield Business Partners will acquire manufacturing company and nuclear contractor Westinghouse Electric Co. in a $4.6B deal.
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Westinghouse owns a large industrial portfolio that is said to be even larger than that of General Electric, and will add to Brookfield’s real estate portfolio — which is currently estimated to be worth $265B, the Wall Street Journal reports.
The transaction comes after Westinghouse filed for Chapter 11 bankruptcy protection last March. Massive cost overruns during the construction of four nuclear reactors in the southeastern U.S. were said to have contributed to its downfall. The series of events also resulted in financial losses and conflict for its parent company, Toshiba, which bought it in 2006 in an effort to grow its presence in the U.S. nuclear market.
The latest deal is said to be funded by Brookfield with $1B of stock and $3B raised through debt financing. The deal is expected to close during Q3 and is subject to court, regulatory and other approvals.
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