• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 2 hours The EU Loses The Principles On Which It Was Built
  • 1 hour Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 hours Starvation, horror in Venezuela
  • 11 hours Crude Price going to $62.50
  • 5 mins Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 1 day Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 7 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 38 mins Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 20 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 1 day Oil prices---Tug of War: Sanctions vs. Trade War
  • 1 day Correlation does not equal causation, but they do tend to tango on occasion
  • 1 day Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 1 day Monsanto hit by $289 Million for cancerous weedkiller
Why Is Big Oil So Excited About Alaskan Crude?

Why Is Big Oil So Excited About Alaskan Crude?

Alaskan officials have just published…

Dollar Strength Is Likely To Cap Oil Price Gains

Dollar Strength Is Likely To Cap Oil Price Gains

An exceptionally strong dollar and…

Toshiba Dumps Westinghouse For $4.6B

investing

Toshiba has sold its U.S. nuclear power business, Westinghouse, for US$4.6 billion to a group of investment companies led by Brookfield Asset Management. The deal puts an end to a major headache for the Japanese conglomerate, which last year warned that it might have trouble surviving if it didn’t find a buyer for the nuclear power plant constructor, which it acquired in 2006 for US$5 billion.

Plagued by project delays and cost overruns that came up to US$6 billion for two large-scale projects in the United States, Westinghouse filed for Chapter 11 bankruptcy protection last March. The business had by that time generated US$6.3 billion in writedowns for the parent company that resulted in Toshiba reporting a net loss of US$9.1 billion for 2016.

The reasons for Westinghouse’s demise were numerous, not least among them the abundance of cheap gas thanks to shale development that weighed on demand for new nuclear power generation capacity, as well as a slowdown in U.S. demand for energy versus expectations of an increase.

Related: Strong Draw In Crude Inventories Lifts Oil Prices

When the company filed for bankruptcy protection, there were expectations that a Chinese company would snap it up, as China is spending billions on new nuclear capacity to meet booming energy demand that fossil fuels and renewable energy cannot keep up with. Yet a Chinese offer never materialized, with observers at the time citing as reasons the White House’s suspicious stand on China in general and Toshiba’s very likely unwillingness to sell Westinghouse to its biggest local rival.

Brookfield Asset Management is a Canadian company with assets of $15.9 billion and an investment focus on energy, construction, and industrial businesses. The company, which is buying Westinghouse through its private equity unit Brookfield Business Partners, will fund the deal with $3 billion in debt and $1 billion in stocks, and it will also assume Westinghouse’s pension and environmental commitments.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News