money Cameco stock down following news of Westinghouse Electric deal
Shares of uranium miner Cameco are down amid news of the company buying stake in Westinghouse Electric.
Video Transcript
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RACHELLE AKUFFO: It's time for "Triple Play," the three stocks that we're watching in the final 30 minutes of trading. We have Cameco, Moderna, and Starbucks. And my pick is uranium miner Cameco. Now the ticker is CCJ. The stock off about, as you can see there, down about almost 14% there. And that's after announcing a deal to buy Westinghouse Electric for $7.9 billion. And that's via a partnership with Brookfield Renewable Partners.
Now, to fund the deal, Cameco is selling $650 million worth of stock priced at $21.95 a share. And it's also expected to close this deal in the second half of 2023. Now, Brookfield Renewable and its institutional partners will own 51% of Westinghouse with the remainder going to Cameco. Now, a significant deal this is, as Westinghouse services nearly half the nuclear power generation sector.
And of course, the timing coincides with nuclear power really in focus at the moment due to the energy crisis in Europe, also high oil and gas prices, and then of course, you have some CEOs, including Elon Musk, who have been pushing for more nuclear energy use, Seana.
SEANA SMITH: Yeah, Rachelle, that drop that we're seeing today, the largest percentage decrease that we've seen in the stock since January of 2017, so just putting today's decline into perspective. You mentioned the focus here on nuclear energy. It's very similar to what we heard when we had the Uranium Energy CEO on the show not too long ago.
He was talking about the importance of nuclear power here, given the current energy climate right now, saying that one in five US homes are powered by nuclear energy. He, of course, is making the case that more of that should be done in our own backyard, that we should be investing more so here in the US for it. But you can see the demand there for nuclear power and exactly what that looks like here, given the current energy landscape.
