Reuters is reporting that Toshiba Corp. revealed Wednesday it is in talks with five or six companies about taking a minority stake in Westinghouse, which it is acquiring for $5.4 billion, but General Electric Co. is not one of them.
General Electric, a failed bidder for Westinghouse, is Toshiba's technology partner for boiling water reactors.
Toshiba, Japan's second-largest electronics conglomerate, said on Monday it had agreed to buy Westinghouse, the U.S. power plant arm of British Nuclear Fuels, to boost its position in the resurgent nuclear power industry. The merged operation is set to be the world's largest nuclear reactor maker, accounting for 28 percent of the global market in terms of power generating capacity, surpassing Areva of France. The deal is expected to expand significantly the Japanese conglomerate's potential customer base. Toshiba offers boiling water reactors, while Westinghouse specializes in the more widely used pressurized water reactors.
"Combining our resources, we aim to build a global leading company that can offer both types of reactors and to expand our business sharply," Toshiba President Atsutoshi Nishida told a news conference.
Revenues from Toshiba's nuclear business are likely to total around 700 billion yen ($5.9 billion) in 2015, up sharply from 200 billion yen now, Nishida said. On profitability, Toshiba's nuclear operations are expected to achieve an operating profit margin of at least 10 percent for the next 10 years.