Toshiba to acquire Shaw’s stake in nuclear contractor

Japanese conglomerate Toshiba Corporation is to buy a 20% stake in nuclear contractor Westinghouse Electric from US contractor Shaw at a price of JPY 125 billion (US$ 1.6 billion). Shaw said the deal should close in January 2014.

Toshiba, which already owns a 67% stake in Westinghouse, said it was “open to talks on the condition that Toshiba retains a majority stake, can expect to share long-term business prospects and strategies with partners, and secure positive synergies.”

Toshiba said it would fund the purchase with cash or loans, and added that it had received interest from other potential partners regarding the investment.

Westinghouse is currently constructing four nuclear reactors in the US and a further four in China.