Beatrice Lang
Westinghouse Electric Company has had a long and complex history, with several changes in ownership over the years. The original company, Westinghouse Electric, was founded by George Westinghouse in 1886 and was active in developing alternating current (AC) electric infrastructure throughout the United States. After a series of divestitures and mergers, the company ceased to exist, and portions of its nuclear business were purchased by Siemens and British Nuclear Fuels Limited (BNFL) in 1998 and 1999, respectively. BNFL then sold the company to Toshiba in 2005, and it was officially renamed Westinghouse Electric Company. In 2018, Toshiba sold Westinghouse to Brookfield Business Partners, a Canadian private equity fund, and in 2023, Brookfield Renewable Partners and Cameco, a Canadian nuclear fuel and services company, acquired Westinghouse in a $7.9 billion deal. The current majority owner of Westinghouse is Brookfield Renewable Partners, with a 51% stake, while Cameco owns the remaining 49%.
| Characteristics | Values |
|---|---|
| Current owner | Brookfield Renewable Partners (51%) and Cameco (49%) |
| Previous owners | George Westinghouse, British Nuclear Fuels Limited (BNFL), Toshiba, Brookfield Business Partners |
| Year of formation | 1999 |
| Year of acquisition by current owners | November 2023 |
| Acquisition cost | $7.9 billion |
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What You'll Learn
Westinghouse Electric Company's ownership history
Westinghouse Electric Company, an American nuclear power company, has a long history dating back to the late 19th century. The company has undergone various ownership changes over the years, with a recent acquisition by Brookfield and Cameco in November 2023.
The Early Years:
The original Westinghouse Electric Company was founded by George Westinghouse in 1886 in Pittsburgh, Pennsylvania. The company focused on developing alternating current (AC) electric infrastructure throughout the United States and was a rival to Thomas Edison's electric company. In 1892, Edison's company merged with Westinghouse's competitor, creating General Electric, which would become a significant player in the industry. Despite this, Westinghouse prevailed in the War of Currents, with its AC distribution methods proving safer and more efficient.
Diversification and Expansion:
Under new leadership, Westinghouse Electric diversified its business, acquiring companies in the electric stove, high-voltage insulator, and elevator industries. They also established some of the first commercial radio stations in Pittsburgh and Boston in 1921. Throughout the 1920s, Westinghouse continued to expand and diversify, experiencing significant sales growth. However, the stock market crash and the Great Depression took a toll, and the company operated at a loss until 1935.
Setbacks and Restructuring:
In the late 1980s, Westinghouse faced significant losses in the mortgage industry, leading to a major restructuring and liquidation of its credit operations in 1992. The company acquired the CBS television network in 1994 and renamed itself CBS Corporation in 1997, marking a shift towards the media industry. CBS Corporation was then acquired by Viacom in 1999, resulting in the end of the original Westinghouse Electric Corporation.
Rebirth and Recent Changes:
In 1999, the Westinghouse Electric Company was reborn as a nuclear power company, formed from the nuclear power division of the original Westinghouse Electric Corporation. It was owned by British Nuclear Fuels Limited (BNFL) and operated under the name Westinghouse Electric Company LLC. In 2005, BNFL sold the company to Toshiba, who acquired a 77% share for $5.4 billion. Toshiba's ownership lasted until 2017 when financial troubles led to Westinghouse filing for bankruptcy. The company was then purchased by Brookfield Business Partners, a Canadian private equity fund, and later sold to a consortium of Brookfield Renewable Partners and Cameco, a Canadian nuclear fuel and services company, in 2022. The acquisition was completed in November 2023, with Brookfield owning 51% and Cameco owning 49% of Westinghouse.
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The company's bankruptcy in 2017
Westinghouse Electric Company filed for bankruptcy protection in March 2017, specifically on Wednesday, March 29. The bankruptcy was caused primarily by ongoing cost overruns at the Vogtle Electric Generating Plant in Georgia and the Virgil C. Summer Nuclear Generating Station in South Carolina, which were the first US builds of the company's AP1000 design. The filing affected only its US operations, which included projects to construct four AP1000 reactors at the two sites mentioned.
The bankruptcy came as a blow to the nuclear industry, with Westinghouse having played a significant role in the development of nuclear energy and the electric grid. The company's parent, Toshiba of Japan, was already dealing with huge losses stemming from Westinghouse's troubled nuclear construction projects in the American South. Toshiba had overpaid for Westinghouse, and the subsidiary's problems were exacerbated by slowing demand for electricity and tumbling natural gas prices, which made the economic case for nuclear power more challenging. The 2011 earthquake in Japan that led to the nuclear disaster at the Fukushima Daiichi plant also renewed worries about the safety of nuclear power.
Westinghouse's bankruptcy was not expected to stop new nuclear builds in America but did create uncertainty. The company selected the Shaw Group, led by James Bernhard Jr., to spearhead construction, despite the group having never built a nuclear plant before. Shaw had bought Stone & Webster, a company that had built many nuclear plants in the past, but the remnant of Stone & Webster had no real nuclear assets or experienced staff left. As a result, the projects fell behind due to significant cost overruns and serious delays.
In January 2018, Toshiba announced the completion of the sale of Westinghouse's holding company to Brookfield Business Partners, a Canadian private equity fund, for $4.6 billion. Westinghouse emerged from bankruptcy after being purchased by Brookfield, with the sale approved by the US Bankruptcy Court. Brookfield's acquisition of Westinghouse was seen as a way to diversify its business into global infrastructure services and position Westinghouse for continued success.
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The current majority owner, Brookfield Renewable Partners
Westinghouse Electric Company is currently majority-owned by Brookfield Renewable Partners, a subsidiary of Brookfield Asset Management. The acquisition of Westinghouse Electric Company was completed on November 7, 2023, in a $7.9 billion deal that included debt. Brookfield Renewable Partners now owns a 51% interest in Westinghouse, while Cameco, a Canadian nuclear fuel and services company, owns the remaining 49%. The acquisition was structured as a limited partnership, with a board of directors consisting of six directors, three appointed by each of the two companies.
Brookfield Renewable Partners' acquisition of Westinghouse Electric Company cements the significant role that Westinghouse plays in enabling the world's clean and secure energy goals. Westinghouse is a leading provider of highly technical aftermarket products and services to commercial nuclear power utilities and government agencies globally. The company is a pioneer in the nuclear energy industry, having supplied the world's first commercial pressurised water reactor in 1957. Westinghouse's focus on nuclear power provides carbon-free, secure, and affordable baseload power, supporting the clean energy transition worldwide.
The acquisition of Westinghouse Electric Company by Brookfield Renewable Partners and Cameco is expected to bring together the strengths of both companies. Brookfield's global leadership across carbon-free energy technologies positions Westinghouse and nuclear power in the clean energy transition, while Cameco's deep experience in the front-end fuel cycle enhances the security of nuclear fuel supply globally. The partnership aims to leverage the expertise of both companies to better serve customers and achieve a carbon-free future.
Westinghouse's financial performance and business prospects are expected to remain strong, with a durable and growing business. The company's recurring and predictable revenue and cash flow profiles are driven by the critical and non-discretionary nature of its products and services to the operation of nuclear power plants worldwide. Westinghouse's long-term contract portfolio positions it well to compete for growing demand for new nuclear reactors, reactor services, and fuel supplies, supporting its long-term growth prospects.
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Cameco's acquisition of Westinghouse
Westinghouse Electric Company has had a long and complex history of ownership, with several changes over the years. The most recent development in its ownership structure occurred in November 2023, when a consortium comprising Brookfield Asset Management, Brookfield Renewable Partners, and Cameco completed the acquisition of Westinghouse Electric Company. This acquisition was valued at $7.9 billion, including debt, with Brookfield Renewable Partners and its institutional partners owning 51% of Westinghouse, and Cameco, a Canadian nuclear fuel and services company, owning the remaining 49%strategic partnership that leverages the strengths of both companies in the nuclear energy sector. Westinghouse is a leading provider of nuclear reactor technology and related services, while Cameco brings deep experience in the front-end fuel cycle, including uranium mining and processing. By acquiring Westinghouse, Cameco gains access to its expertise in reactor design, construction, and maintenance, enhancing its ability to compete for more business in the growing demand profile for nuclear energy.
Secondly, the acquisition aligns with the global push towards clean and secure energy goals. Westinghouse's capabilities in nuclear reactor technology and services are crucial in enabling the transition to carbon-free energy. Cameco's involvement further strengthens the security of nuclear fuel supply globally, as it complements Westinghouse's fabrication and services capabilities with its experience in the front-end fuel cycle. This combined expertise positions Westinghouse and Cameco to play a significant role in supporting countries and companies in meeting their net-zero commitments and energy needs through clean and secure solutions.
The acquisition also holds financial implications for Cameco. As a 49% stakeholder in Westinghouse, Cameco gains a substantial stake in one of the world's largest nuclear services businesses. This provides Cameco with a share of Westinghouse's revenues and durable cash flows, which are driven by its long-term contracts and predictable business model. However, it is important to note that Cameco's investment in Westinghouse is considered high-risk due to the volatile nature of the nuclear power industry and the commodity-driven nature of its business.
Overall, Cameco's acquisition of Westinghouse represents a strategic move towards growth and competitiveness in the nuclear energy sector. By leveraging Westinghouse's expertise and positioning in the market, Cameco enhances its ability to serve customers and pursue a carbon-free future. The acquisition also underscores the importance of nuclear energy in the global energy transition, as Westinghouse and Cameco work together to support clean and secure energy goals worldwide.
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Westinghouse's business operations
Westinghouse Electric Company, currently owned by Brookfield Renewable Partners (majority stake) and Cameco, is a leading provider of nuclear reactor technology and a range of aftermarket products and services to commercial nuclear power plants and government agencies worldwide. The company's main product is the AP1000, a modern pressurised water reactor (PWR) with passive safety features and modular construction, reducing construction time and costs.
Westinghouse has been a significant player in the nuclear power industry for decades, with its roots in the US government's military program for nuclear energy applications. The company has a global presence, with business locations in Italy, Germany, Spain, the UK, Russia, Bulgaria, and South Korea. In South Korea, Westinghouse has been involved in nuclear plant construction since 1972, and it has also expanded into China and India.
Over the years, Westinghouse has diversified its business operations beyond nuclear power. In the early and mid-20th century, the company was heavily involved in heavy industry, electrical production and distribution, consumer electronics, and home appliances. Westinghouse also ventured into broadcasting, establishing the first commercial radio station in Pittsburgh in 1921. The company expanded through acquisitions, including Infinity Broadcasting, TNN, CMT, and American Radio Systems.
However, financial challenges led Westinghouse to sell off several divisions, including its defense electronics division, metering and load control division, residential security division, and office furniture company Knoll. Westinghouse's business operations continued to evolve, and it entered the financial services industry in the 1970s and 1980s.
Today, Westinghouse continues to innovate and adapt to the changing energy landscape. The company is committed to supporting the transition to clean and secure energy, leveraging its expertise in nuclear power and carbon-free energy technologies. With its durable and growing business, Westinghouse is well-positioned for long-term growth and contributing to a sustainable future.
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Frequently asked questions
Westinghouse Electric Company is owned by Brookfield Renewable Partners (51%) and Cameco (49%).
No, the company was founded by George Westinghouse in 1886. It was then known as Westinghouse Electric & Manufacturing Company. Over the years, the company has changed hands several times. In 1998, portions of its nuclear business were purchased by Siemens. In 1999, the remaining parts were purchased by British Nuclear Fuels Limited (BNFL) and formed as Westinghouse Electric. In 2005, BNFL sold the company to Toshiba. In 2022, Brookfield Renewable Partners and Cameco acquired Westinghouse Electric from Brookfield Business Partners.
The acquisition was driven by the rising global interest in nuclear power due to geopolitical and climate concerns. The companies aim to leverage their respective expertise to better serve customers and achieve a carbon-free future.
