Toshiba raises stake in Westinghouse to 87%
Toshiba Corp. said it will go ahead with a deal to raise its stake in nuclear power subsidiary Westinghouse Electric Co. despite uncertainty about the future of the technology in Japan after the nuclear disaster in Fukushima.
The Japanese electronics maker said Wednesday it will purchase another 20 percent stake from U.S.-based Shaw Group for $1.6 billion, raising Toshiba's ownership to 87 percent. Shaw paid $1.08 billion for its share of Westinghouse in 2006.
The deal with Shaw was announced in September 2011.
About 10 percent of Westinghouse is owned by Kazatamprom, a state-owned uranium company in Kazakhstan, which acquired its stake from Toshiba in 2007. Another Japanese company, Ishikawajima-Harima Heavy Industries Co., a heavy-machine maker, owns a 3 percent share of Westinghouse, which it acquired for about $160 million in 2006.
Westinghouse is under contract to supply four nuclear reactors in the United States and four in China, and is talking with potential partners to expand its business.
Westinghouse designed 62 of the 104 nuclear reactors in the United States and roughly 45 percent of the world's 440 nuclear reactors. The company employs about 14,000 people, including about 6,000 in Western Pennsylvania, mostly at its headquarters in Cranberry.
Toshiba acquired control of Westinghouse in 2006 from British Nuclear Fuels plc in a $4.2 billion deal. BNFL acquired Westinghouse in 1999 for $1.2 billion from CBS Corp.
Public worries about atomic energy surged in Japan after the tsunami last year set off multiple meltdowns at Fukushima Daiichi nuclear power plant.
None of those reactors were supplied by Westinghouse.
All of Japan's reactors were put offline, but two were brought back earlier this year. The Japanese government is targeting a phase-out of nuclear power by 2040.
The Associated Press contributed to this report.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- LaBar: WWE not backing down from controversy
- Overhaul of military benefit programs sought
- Rossi: In Super city, everything but football matters
- Slumping Pitt keeps chin up
- Stat dropoff, road struggles have Penguins seeking consistency
- Police shoot pit bull that attacked Beaver County man, son
- Scott set to make Hall of Fame history
- Trib Cup: Baldwin girls basketball team stands by motto
- Connellsville girls fall short against Penn-Trafford
- Suspect in West Newton burglary sought, alleged accomplice arrested
- Armstrong scores late, topples Plum