Toshiba expects to close the deal within six months and does not anticipate any regulatory hurdles in the US. Westinghouse will keep its headquarters in Pennsylvania, as well as its equipment, employees and trademarks.

Westinghouse is the US power plant arm of British Nuclear Fuels and has been under the British company''s fold since being acquired for $1.1 billion in 1999. It has annual sales of $1.8 billion and employs 9,000 people. BNFL operates four active UK power stations and seven that are being decommissioned.

Also in the fray to acquire Westinghouse were General Electric and Mitsubishi Heavy Industries since the middle of last year when the British company had decided on the sell-off. Toshiba was selected after multiple rounds of bidding that began with 14 interested companies, including General Electric Co. and Mitsubishi Heavy Industries.

The Japanese electronics giant emerged as the preferred bidder, paying three times the amount BNFL had originally expected to raise from the Westinghouse sell-off.

Toshiba, which makes electronic goods including DVD players, semiconductors, electric motors and power systems, is preparing for an expected surge of new investment in power plants in China, India and the US. Westinghouse, which has built most of the nuclear reactors in the United States, is likely to design the plants and service them as and when they materialise.

The Japanese giant believes that looking at the future growth and profit potential of the business, the price being paid for Westinhouse was right one.

"By 2020 the market for nuclear power generation is expected to grow 50 percent compared to 2005," Atsutoshi Nishida, Toshiba''s chief executive, said while announcing the acquisition from London during a press conference. "Toshiba is responding to this challenge by acquiring Westinghouse."

Though Toshiba will acquire 100 per cent of Westinghouse, it is discussing with other US and Japanese companies the possibility of their taking a minority stake, while Toshiba will maintain a controlling share of over 51 per cent.

Upon completion of the acquisition, Toshiba says it expects its nuclear power business to expand to three times the current level by 2015 as a result of operational and technological synergies with its newly-acquired asset.

Analysts say the high-profile battle for control of Westinghouse points to the view among global energy majors that energy is an industry that could grow in importance as the world grapples with limited resources of oil and other fossil fuels.

Nuclear power has emerged as a possible alternative to oil and countries are increasingly looking at it to contain rising fossil fuel costs and cut carbon emissions.