Report: Blackstone, Apollo bid for bankrupt nuke firm Westinghouse
Blackstone Group and Apollo Global Management have teamed up to bid for bankrupt Westinghouse Electric in a deal that could be worth $4 billion, Reuters reports.
Cerberus Capital Management and BWX Technologies are also considering mounting a bid for the bankrupt nuclear power company, the news agency said.
- Westinghouse has begun to work through the bankruptcy process by either seeking investment or a buyer, but the company declined to comment the process.
Westinghouse filed for bankruptcy in March, brought down by cost overruns at two nuclear power projects it is working on in the United States — the Vogtle project now being built by Southern Co. in Georgia, and the V.C. Summer project in South Carolina that was being built by SCANA and Santee Cooper until the partners abandoned the project in July.
In the wake of the bankruptcy filing, Westinghouse CEO Jose Gutierrez said earlier this month the company would exit the nuclear construction business. The fixed price construction contracts Westinghouse signed for the two U.S. nuclear projects were a primary source of financial problems that brought the company down.
Westinghouse’s financial problems are also a concern for Toshiba, Westinghouse’s corporate parent, which in April reorganized its business operations in an effort to insulate itself from potential fallout from Westinghouse’s bankruptcy.
Analysts say Westinghouse’s bankruptcy makes new U.S. nuclear construction unlikely in the short term, at least until the potential commercialization of small modular reactors in the early 2020s. But Westinghouse officials say the prospects for new nuclear plants remains robust in countries such as China and India.
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