Cameco to acquire fuel trader NUKEM

17 May 2012

Canadian uranium firm Cameco has entered into an agreement to buy Germany nuclear fuel trading company NUKEM. The transaction is due to be completed in the fourth quarter of 2012, subject to regulatory approval.

Cameco will pay Advent, and NUKEM’s other shareholders EUR105 million ($136 million) on closing. The agreement includes provisions for Advent to be given a share of NUKEM’s future earnings, until the end of 2014, under certain conditions.

NUKEM has been involved in the nuclear energy industry for more than 50 years and has developed strong relationships with customers and suppliers involved in the fuel cycle. In 2011, the firm sold 12 million pounds of uranium and it expects to sell between 10 and 15 million pounds of uranium in 2012.

The company's assets include uncommitted inventory and a portfolio of purchase and sales contracts including approximately 4.5 million pounds of uranium that remains available to NUKEM under the HEU commercial agreement through 2013.

"This acquisition complements Cameco's business by strengthening our position in nuclear fuel markets and improving our access to unconventional and secondary sources of supply," said president and CEO Tim Gitzel. "After closing, it is expected that NUKEM will add solid cash flow and will have a positive impact on earnings starting in 2013."

NUKEM will continue to operate as an independent company after closing, Cameco said.


Related Articles
Georges Besse I ceases operation
The well-balanced market
USEC planning to continue Paducah operations
Usec reports huge loss for 2012



Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.