Cameco Corp. shares rose more than 20 percent after the uranium company and Brookfield Asset Management Ltd. announced a partnership agreement with the US government to help build nuclear reactors in the United States.
Under the agreement, the US government will arrange financing and facilitate permitting and approvals for new Westinghouse nuclear reactors in the US at a cost of at least US$80 billion.
Brookfield and Cameco acquired Westinghouse in November 2023.
“We expect the new U.S. construction commitment to bolster confidence in the sustainable growth of nuclear power and support growing demand for Westinghouse and Cameco products, services and technologies,” Cameco Chief Executive Tim Gitzel said in a statement.
“This new partnership highlights the role that Westinghouse reactor technologies, based on fully designed, licensed and operational reactors, are expected to play in the planned expansion of nuclear capacity and the diversification of global nuclear supply chains.”
Cameco shares rose $25.36 to $146.62 in trading on the Toronto Stock Exchange, while Brookfield Asset Management Class A shares rose $1.50 to $77.91.
US Commerce Secretary Howard Lutnick said the government is focused on ensuring the rapid development, deployment and use of advanced nuclear technologies.
“This historic partnership supports our national security goals and strengthens our critical infrastructure,” he said in a statement.
The partnership agreement provides that the US government will receive an equity interest which, once vested, will entitle it to 20 percent of any cash payments in excess of US$17.5 billion made by Westinghouse upon grant.
To vest the ownership interest, the US government must make a final investment decision and enter into definitive agreements to complete construction of new Westinghouse nuclear reactors in the US at a cost of at least US$80 billion.
The U.S. Government will also have the right, under certain circumstances, to convert the equity interest into a warrant to purchase shares in Westinghouse's initial public offering, equivalent to 20 percent of the company's then-public value after deducting $17.5 billion.
