Shares of Cameco Corp surged over 20% following the announcement of a partnership agreement between the uranium company, Brookfield Asset Management Ltd, and the U.S. government to collaborate on constructing nuclear reactors in the United States. The deal entails the U.S. government facilitating financing, permits, and approvals for new Westinghouse nuclear reactors valued at a minimum of $80 billion US in the U.S. Brookfield and Cameco acquired Westinghouse in November 2023.
Cameco’s CEO, Tim Gitzel, expressed optimism about the partnership, emphasizing the positive impact on the growth of nuclear power and the increased demand for their products and services. The collaboration underscores the significance of Westinghouse’s reactor technologies in expanding nuclear capacity globally.
Cameco’s shares on the Toronto Stock Exchange rose to $146.62, an increase of $25.36, while Brookfield Asset Management’s class A shares also saw a gain of $1.50, reaching $77.91.
U.S. Commerce Secretary Howard Lutnick highlighted the government’s commitment to advancing nuclear technologies rapidly for national security and critical infrastructure enhancement. The partnership agreement includes the U.S. government acquiring a participation interest, granting it a 20% share of cash distributions exceeding $17.5 billion US from Westinghouse.
To activate the participation interest, the U.S. government must finalize investment decisions and sign definitive agreements for constructing at least $80 billion US worth of new Westinghouse nuclear reactors. Additionally, the government may convert the participation interest into a warrant for purchasing shares in Westinghouse’s initial public offering equivalent to 20% of the company’s public value minus $17.5 billion US under specific conditions.