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| Toshiba's Westinghouse to be sold in $4.6bn deal | |
| (about 17 hours later) | |
| Toshiba's troubled nuclear division, Westinghouse Electric, is set to be acquired by a Canadian company in a deal valued at $4.6bn (£3.4bn). | Toshiba's troubled nuclear division, Westinghouse Electric, is set to be acquired by a Canadian company in a deal valued at $4.6bn (£3.4bn). |
| The deal, which was announced by Westinghouse, would resolve the fate of a business that has weighed on the future of the Japanese conglomerate. | The deal, which was announced by Westinghouse, would resolve the fate of a business that has weighed on the future of the Japanese conglomerate. |
| Westinghouse filed for bankruptcy protection in the US last March. | Westinghouse filed for bankruptcy protection in the US last March. |
| Shortly after, Toshiba warned that losses in the unit jeopardised its ability to continue as a going concern. | Shortly after, Toshiba warned that losses in the unit jeopardised its ability to continue as a going concern. |
| Toshiba has struck deals to sell key assets, including its prized memory chip unit, in an effort to recover. It has been working to sell Westinghouse for months. | Toshiba has struck deals to sell key assets, including its prized memory chip unit, in an effort to recover. It has been working to sell Westinghouse for months. |
| The planned buyer of Westinghouse, Brookfield Business Partners, is the private equity division of Toronto-based Brookfield Asset Management. | The planned buyer of Westinghouse, Brookfield Business Partners, is the private equity division of Toronto-based Brookfield Asset Management. |
| It counts $15.9bn in assets, with investments in energy, construction and industrial operations. | It counts $15.9bn in assets, with investments in energy, construction and industrial operations. |
| Brookfield said in a statement that Westinghouse had a strong market position "as the largest service provider to nuclear power plants worldwide". | Brookfield said in a statement that Westinghouse had a strong market position "as the largest service provider to nuclear power plants worldwide". |
| It also noted that most of the firm's profits came from regular services provided under long term contracts. | It also noted that most of the firm's profits came from regular services provided under long term contracts. |
| Letter of intent | Letter of intent |
| Brookfield said it has signed a letter of intent to purchase Westinghouse's global businesses, to be paid for with $1bn in equity and $3bn in debt financing. | Brookfield said it has signed a letter of intent to purchase Westinghouse's global businesses, to be paid for with $1bn in equity and $3bn in debt financing. |
| It is also taking on certain Westinghouse obligations, such as pension and environmental commitments. | It is also taking on certain Westinghouse obligations, such as pension and environmental commitments. |
| The firm said it expects the deal to close in the third quarter of 2018, assuming the takeover is approved. The deal includes Westinghouse's global operations. | The firm said it expects the deal to close in the third quarter of 2018, assuming the takeover is approved. The deal includes Westinghouse's global operations. |
| Toshiba acquired Westinghouse in 2006 for more than $5bn, but the prospects for nuclear power have dimmed, as oil and renewable energy costs decline and the Fukushima accident hurt the industry's reputation. | Toshiba acquired Westinghouse in 2006 for more than $5bn, but the prospects for nuclear power have dimmed, as oil and renewable energy costs decline and the Fukushima accident hurt the industry's reputation. |
| Cost overruns and other losses at two projects in the US led to the bankruptcy filing in 2017. | Cost overruns and other losses at two projects in the US led to the bankruptcy filing in 2017. |
| Last month Toshiba provisionally agreed to sell NuGen, which is working on plans for a nuclear power station in the UK. | Last month Toshiba provisionally agreed to sell NuGen, which is working on plans for a nuclear power station in the UK. |
| In December, NuGen named South Korean utility Kepco as the preferred buyer for NuGen, and said it would continue working toward the proposed Moorside plant in Cumbria. | In December, NuGen named South Korean utility Kepco as the preferred buyer for NuGen, and said it would continue working toward the proposed Moorside plant in Cumbria. |
| Westinghouse had previously been in line to provide technology for the project. | Westinghouse had previously been in line to provide technology for the project. |