Cameco: Westinghouse Deal Brings Value

Summary

Cameco Corporation and Brookfield Renewable are teaming up to buy Westinghouse.

Vertical integration is being touted as the rationale for the deal.

Russia-related geopolitical concerns will benefit Westinghouse. JacobH Just under two weeks ago, I wrote a piece about Cameco Corporation (NYSE: CCJ ) in which I upgraded the stock from a Sell to a Buy. The change in rating was based on several factors that included improving industry fundamentals, the restart of McArthur River Mine, changes in the long-term contract portfolio, and the completion of a cap raise that I suspected would be used to buyout the remainder of Cigar Lake Mine.But like most of the market, I was rather surprised when I heard Cameco had agreed to purchase the Westinghouse Electric Company from Brookfield’s private equity arm, Brookfield Business Partners ( BBU ). Upon first hearing the news, I had misgivings about the proposed transaction; questioning […]

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