Toshiba Corporation has announced that it intends to purchase The Shaw Group’s 20% holding in Westinghouse Electric Company for approximately 125 billion yen ($988 million) by immediately available cash and/or loans.
The Shaw Group Inc. subsidiary Nuclear Energy Holdings exercised its option to sell its 20% holding in Westinghouse on 6 October. Under the terms of the option agreement, cash settlement will be 90 days thereafter, in January 2013. The acquisition will bring Toshiba's stake in Westinghouse to 87%.
Toshiba said that it “has received interest" from potential partners regarding the acquisition of a stake in Westinghouse, and 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.”
Shaw Group is working with Westinghouse on AP1000 projects in the USA and China, and has already agreed to see all currently outstanding orders through to a successful completion. After Shaw Group’s had excercised its option to sell, Toshiba said that it “will select future plant engineering partners on a project-by-project basis.”
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