Toshiba’s struggling nuclear unit, Westinghouse Electric, is to be purchased by a Canadian company in a deal valued at $4.6bn (£3.4bn). Westinghouse Electric declared its bankruptcy in March last year.
Brookfield Business Partners, the private equity division of Toronto-based Brookfield Asset Management has decided to buy Westinghouse Electric along with nuclear unit’s obligations of paying pension and fulfilling environmental commitments.
Toshiba bought Westinghouse in 2006 for over $5bn, but due to decline in the oil and renewable energy prices, the business lost its profitability.
This deal will resolve the fate of Toshiba as the nuclear unit was really a big burden for the Japanese conglomerate.
Brookfield said that Westinghouse had a firm position in the market and is expecting the purchase to bring more success to the company. The deal is supposed to be concluded by the third quarter of this year.