Toshiba in talks to buy out Shaw’s stake in Westinghouse Electric: report

Toshiba Corp, the largest maker of nuclear reactors in Japan, is in talks to buy out engineering services provider Shaw Group's 20-per cent stake in nuclear power-plant company Westinghouse Electric Co, The Wall Street Journal today reported, citing people familiar with the matter.

If the deal goes through, it would wipe out any US ownership of the 125-year-old American company that is already majority-owned by Toshiba, the paper said.

Tokyo-based Toshiba, Shaw Group and Japan's Ishikawajima-Harima Heavy Industries had acquired a majority stake in Westinghouse in 2006 from British Nuclear Fuels Plc for $5.4 billion with Toshiba taking 77 per cent stake, while Shaw Group took 20 per cent and Ishikawajima 3 per cent (See: Toshiba buys Westinghouse for $5.4 billion).

Toshiba paid $4.16 billion for its stake, while Louisiana-based Shaw Group paid $1.08 billion for its stake by issuing $1.08 billion of bonds in a private placement and Ishikawajima paid $16 million.

As part of the deal, Shaw had the option to sell all or part of its 20 per cent stake to Toshiba before the six-and-a-half-year maturity of the bonds.

Pittsburgh, Pennsylvania-based Westinghouse Electric provides fuel, services, technology, plant design, and equipment to utility and industrial customers in the worldwide commercial nuclear electric power industry.

Nearly 50 per cent of the nuclear power plants in operation worldwide, and nearly 60 per cent in the US, are based on Westinghouse technology.