Toshiba to Acquire Urenco
Japanese industrial conglomerate Toshiba is looking to expand its nuclear energy business, even as other big nuclear equipment companies such as GE and Siemens are lowering their exposure to the nuclear business. After the Fukushima incident, nuclear energy globally has received a lot of blowback and a number of top global energy and business companies have left the business. Many European countries such as Germany (LINK), Belgium and Switzerland have decided to make a complete exit from nuclear energy. However, Japan seems to be backtracking on its promise of nuclear reactor shutdown despite huge civilian protests. A massive energy shortage has meant that anti-nuclear campaigners are losing their enthusiasm. The new nationalist government headed by Shinzo Abe is more pro-business in nature and looks likely to reverse the decision. Toshiba which is one of the world’s top 3 equipment companies (LINK), is looking to expand into the space vacated by other industrial giants. The company is set to bid for UK nuclear fuel producer Urenco in a deal which would be valued at roughly 13 billion dollars.
Toshiba had earlier acquired top US nuclear company Westinghouse in a multi billion dollar deal, to become the 2nd biggest nuclear company. Acquisition of Urenco could push it to the top global spot. It has been reported that Private Equity firms are also interested in buying this company which is owned by the UK, Dutch and German governments.
Japanese industrial electronics firm Toshiba is considering making a bid for British nuclear fuel producer Urenco, the Sunday Times reported, without citing sources.Toshiba is understood to be in talks with several backers, including bank Mizuho, the paper said. Toshiba could not immediately be reached for comment. Urenco, formed by the British, German and Dutch governments in the 1970s, is controlled by a shareholding pact aimed at preventing its cutting-edge centrifuge technology from ending up in the wrong hands.The shareholders have been conducting a strategic review, and have appointed advisers to discuss possible future options for the company, thought to be worth around 10 billion euros ($13 billion).
WIN A SOLAR LIGHT DAILY on GWI!Google+