Toshiba Corporation on October 4 announced that it had passed a major milestone in its acquisition of BNFL USA Group Inc. and Westinghouse U.K. Limited (collectively Westinghouse): the completion and clearance of all necessary regulatory filings and reviews both in the
The company also announced that it has entered into partnership agreements with the Shaw Group, a major U.S. engineering firm, and Ishikawajima-Harima Heavy Industries Co. Ltd. (IHI), a leading Japanese heavy electrical engineering company, that ensures their participation as strategic investment partners in Toshiba's acquisition of Westinghouse.
Toshiba's successful February 2006 bid for Westinghouse immediately attracted attention from leading enterprises in Japan and overseas, which recognized that the acquisition would create a world-class enterprise in the highly promising field of nuclear power engineering. Toshiba has subsequently engaged in comprehensive discussions on capital participation with a number of potential partners in terms of (1) long-term business strategy, (2) shared market vision, and (3) complementary relations in conducting business. As a result, Shaw and IHI will be Toshiba's partners at the time of the closing, and Toshiba will continue to discuss potential partnerships with other companies.
At the closing, Toshiba's ownership interest will be 77 percent, Shaw's 20 percent and IHI's 3 percent. Toshiba's investment in Westinghouse will amount to US$4.158 billion.
Nuclear energy is attracting renewed attention around the world as an environmentally friendly energy source. In the U.S., a number of utility companies have recently announced new projects, the United Kingdom government has reviewed its energy policy in favor of nuclear solutions, and many Asian countries are showing strong interest in nuclear energy.
In these circumstances, Toshiba is seeking to establish a new ownership structure that will accelerate operations by the ownership group and fully meet global market requirements. Under the new structure, the three partners will promote complementary relations in manufacturing, engineering and sales and marketing, with the goal of becoming the global leader in nuclear power generation, capable of providing comprehensive, one-stop solutions including machinery and services in both BWR (Boiling Water Reactor) and PWR (Pressurized Water Reactor) systems.
