Westinghouse deal completed

31 March 1999

British Nuclear Fuels and Morrison Knudsen have completed the purchase of Westinghouse from CBS. The deal, which was first announced last June, is worth $1.1 billion. BNFL and MK are paying $200 million in cash, with the rest accounted for in agreed liabilities and future obligations.

A major concern for the US authorities was the potential the take-over posed for allowing British involvement in defence related business. Partly to address this problem, Westinghouse will be split into three separate companies: Westinghouse Electric Company (WEC) will be 100% owned by newly established BNFL subsidiary BNFL Nuclear Services Inc (BNSI), and focus on commercial nuclear power.

Westinghouse Government Environmental Services Company (WGESC), which will carry out non-defence related government and environmental business. It will be jointly owned and managed by BNSI with 40% and MK with 60%.

Westinghouse Government Services Company, which will deal with defence related work and will be 100% owned by MK.

“The deal will transform BNFL into a global nuclear company,” said BNFL ceo John Taylor. “We already have a strong and reputable clean-up business in the US, led by BNFL Inc. Taking over the Westinghouse nuclear services business brings a whole new dimension to our global strategy.” BNFL will integrate its existing nuclear fuel business into what is now a global nuclear fuel operation. BNFL’s share in WGESC strengthens its position in nuclear clean-up and decommissioning. Included in WGESC is the Waste Isolation Pilot Project in Carlsbad, New Mexico; the West Valley Nuclear Services Company in New York state; Westinghouse Anniston, Alabama; Safe Site of Colorado; and the Government and Technical Services Division.

Charlie Pryor, who has headed Westinghouse during the transition period, will become President of WEC and a member of the BNFL executive.

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