Cameco (NYSE:CCJ) stock is slipping on Wednesday after the company announced its intent to acquire Westinghouse Electric Company.
Cameco isn’t buying Westinghouse Electric on its own. Instead, the company is forming a strategic partnership with Brookfield Renewable Partners (NYSE:BEP) that will see them splitting ownership of the nuclear power company.
This deal will see Cameco hold a 49% stake in Westinghouse Electric. The remaining 51% will belong to Brookfield Renewable. This has the two companies sharing the $4.5 billion equity cost, with Cameco covering $2.2 billion and Brookfield handling the other $2.3 billion.
Cameco notes that it has the funds on hand to support its part of the acquisition. However, it’s seeking out alternatives to fund the deal so as to maintain its balance sheet.
CCJ Stock: Cameco CEO Comments on Deal
Tim Gitzel, President and CEO of Cameco, said the following about the deal:
“We expect the recurring demand for Westinghouse’s operating plant services and nuclear fuel will generate a strong revenue stream and add stable cash flow to complement Cameco’s existing uranium and fuel services business.”
News of the acquisition deal has shares of CCJ stock seeing heavy trading on Wednesday. As of this writing, more than 29 million shares have changed hands. That’s a major increase over the daily average trading volume of about 6 million shares.
CCJ stock is down 15% as of Wednesday morning.
Investors can find more of the latest stock market news below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
