Cameco, Brookfield Asset Management Strike Partnership with U.S. Government to Deploy Westinghouse Nuclear Reactors
MT Newswires · Oct-28-2025 6:43 AM ET
06:43 AM EDT, 10/28/2025 (MT Newswires) -- Cameco (CCJ.NaE) Tuesday said the company and Brookfield Asset Management (BAM.NaE) have entered into a binding term sheet with the U.S. Department of Commerce to form a strategic partnership to accelerate the global deployment of Westinghouse Electric's nuclear reactor technologies.
Under the deal, the U.S. government will arrange financing and facilitate the permitting and approvals for new Westinghouse reactors to be built in the U.S. The total investment value is at least US$80 billion, including near-term financing of long lead time items.
The US government will be granted a participation interest entitling it to receive 20% of any cash distributions in excess of $17.5 billion made by Westinghouse.
For the participation interest to vest, the US government must make a final investment decision and enter into definitive agreements to complete the construction of new Westinghouse reactors in the US with an aggregate value of at least $80 billion.
If the participation interest has vested on or before January 2029, and if the valuation in an initial public offering of Westinghouse is expected to be $30 billion or more, the U.S. government will be entitled to require an IPO.
Prior to or in connection with the IPO, the participation interest be converted into a warrant with a five-year term to purchase equity securities equivalent to 20% of the public value of the IPO entity after deducting $17.5 billion from the public value.
The partnership is expected to reinvigorate U.S. and global supply chains and the nuclear power industry base. Once built, the reactors will help boost power grid reliability and power data centers to drive growth in artificial intelligence in the U.S.
"When coupled with the May 23, 2025, Executive Orders, we believe the US Government's participation in the partnership creates the right incentives to deploy its full suite of tools behind the construction of Westinghouse reactors, including financial, regulatory, policy and diplomatic support," said Cameco (CCJ.NaE) CEO Tim Gitzel.
At deal closing and with U.S. government-facilitated financing, Westinghouse will start project execution and initiate orders for critical equipment with long lead times.
As a major supplier of uranium and nuclear fuel services and components, Cameco (CCJ.NaE) said it is well-positioned to benefit from the continued expansion of nuclear power in the US and globally.
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When CCJ partnered with BAM to buy Westinghouse, I was upset that they got 49% instead of the 51%. Westinghouse is the main reason I keep CCJ as core while trading other uranium stocks. However, that seems to be moot because they will likely spin out Westinghouse. |
