Mentioned:
The American government wants to win the nuclear energy race. And they’ve just cut their biggest deal yet to do it.
What’s happening:
- Cameco (NYSE: CCJ) and Brookfield Asset Management have entered into a new deal with the United States Department of Commerce focused on the global deployment of $80B USD of new nuclear reactors
Why it matters:
- This is the largest scale deal for deploying new nuclear reactors that the United States government has ever done with a publicly traded company
Going deeper:
- Cameco and Brookfield Asset Management will deploy Westinghouse nuclear reactors that are developed by Westinghouse Electric Company which is co-owned by both Cameco and Brookfield Asset Management as part of the new deal with the United States government
- The United States government has publicly stated they will support new nuclear reactor deployments through financing guarantees, regulatory approvals and permitting
The intrigue:
- The United States government will receive a 20% interest in any cash distributions made above $17.5B USD by Westinghouse Electric Company and has the right to require Westinghouse Electric Company to IPO if their valuation exceeds $30B USD
