Chicago Bridge & Iron Company (CB&I) announced it has entered into a definitive agreement with Westinghouse Electric Company LLC (WEC), in which WEC will acquire all of the outstanding equity interests in CB&I’s nuclear construction business. The transaction is expected to close in the fourth quarter 2015 and is subject to customary closing conditions and adjustments.
Under the agreement, WEC will purchase the business of engineering, construction, procurement, management, design, installation, start-up and testing of nuclear-fueled facilities, including the V.C. Summer project in South Carolina, the Vogtle project in Georgia and the nuclear projects in China. WEC also is acquiring CB&I’s nuclear integrated services business, which includes small capital projects for existing nuclear plants in the U.S.
Upon closing, WEC will assume full responsibility for all AP1000 nuclear projects and the nuclear integrated services business. CB&I will continue to supply discrete scopes of modules, fabricated pipe and specialty services to WEC on a subcontract basis for the U.S. nuclear projects.
Westinghouse said the deal would support its expansion in “strategic growth initiatives … across its global footprint.”
In conjunction with the announcement, Westinghouse confirmed that it was in talks with Fluor Corporation on a deal that “if successful, would result in Fluor hiring and managing the construction workforce on these two U.S. projects,” referring to AP1000 nuclear build projects in Georgia and South Carolina. Fluor later confirmed that the deal had been struck.
Reuters reported that Fluor would manage “a significant portion” of the Unit 3 and 4 projects at the Vogtle Electric Generating Plant near Waynesboro, Ga., and the two new units at the V.C. Summer Nuclear Generating Station near Fairfield, S.C