Nuclear referendum in the market
BNFL has announced that they are going to sell their Westinghouse division. This sale is going to be an interesting case to watch, as it will either validate my position about the bright future for nuclear power or disprove it.
Though there are a lot of legacy products with the Westinghouse brand on them, the organization that BNFL is going to sell is one of the purest nuclear plays in the market. Through a series of acquisitions, reorganizations, spin-offs, and mergers, the Westinghouse Electric Company LLC has become a tightly focused company with market leading operations in nuclear fuel manufacturing, reactor design and component manufacture and nuclear plant services.
The intial indication is that at least 15 different entities have expressed interest in buying Westinghouse to BNFL. Some of BNFL’s unions have already indicated that they are not in favor of the sale – they believe that the nuclear business is just getting ready to blossom and they do not understand why the company would sell right now.
The beginning price that is being discussed is about $1.8 Billion US dollars – which is also approximately a billion pounds stirling. I will go out on a limb and predict that the final selling price will be at least 10% higher than that.
If the bidding approaches a frenzy, it will be a resounding vote for new nuclear power!