Cameco and Brookfield Renewable, a Toronto-based renewable power corporation, will become partners in order to purchase the U.S.-based Westinghouse Electric Company, one of the largest nuclear services businesses globally.

Brookfield Renewable and its consortium partners will own a 51 per cent interest in Westinghouse, while Cameco will own a 49 per cent interest. Westinghouse is valued at a total of US$7.875 billion.

The company’s existing debt structure will remain unchanged, with an estimated US$4.5 billion equity cost to be split between Brookfield Renewable and its partners (roughly US$2.3 billion) and Cameco (roughly US$2.2 billion).

“Every credible net-zero pathway relies on significant growth in nuclear power. It is an essential, reliable zero-carbon technology that directly displaces fossil fuels and supports the growth of renewables by providing critical baseload to our grids,” said Mark Carney, vice-chair and head of transition investing at Brookfield Renewable. “The partnership of Brookfield and Cameco will help drive forward the growth of nuclear power that the world needs for its clean energy transition.”

For Cameco, this marks a significant change from being one of the largest uranium fuel producers globally to also becoming a major player in providing nuclear energy. For both companies, this partnership is meant to take advantage of the projected growth in demand for nuclear power and could offer more efficient access to uranium fuel supplies sourced in North America and Europe.

“We are witnessing some of the best market fundamentals we’ve ever seen in the nuclear energy sector. As one of the few forms of electricity generation capable of safely, reliably and affordably producing emissions-free, baseload power, nuclear energy is becoming increasingly important in a world that prioritizes electrification, decarbonization and energy security,” said Tim Gitzel, president and CEO of Cameco. “The opportunity to partner with Brookfield Renewable, a leader in the clean-energy space, to acquire Westinghouse is expected to create a platform for growth across the nuclear value chain. Coupled with our more than 30-year proven track record of providing secure and reliable fuel supplies to a global customer base, this transaction fits perfectly within Cameco’s strategy and is expected to increase our ability to meet the growing needs of existing and new customers at a time when origin and security of supply is of significant concern.”