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KEPCO Emerges As Probable Buyer For Westinghouse Electric Corporation

By March 9, 2017 at 7:08 am
Staff from KEPCO Inside Egbin Power Plc Electricity Generation Plant (Photo : George Osodi/Bloomberg via Getty Images)

The Korea Electric Power Corporation or KEPCO has emerged as the potential buyer for Westinghouse Electric Corporation. It has been reported previously that GE, Mitsubishi, and other possible bidders expressed their disinterest in this nuclear firm.

It was last month when Toshiba announced that it will dispose of its ownership of Westinghouse which it acquired last 2006 for a price of $5.4 billion. The company saw the need to sell it in order to raise the much-needed funds to solve the trouble on its financial health.

The said American nuclear firm has been struggling for years already following the meltdown of Japan's Fukushima plant way back 2011. The company has been grappling with declining sales. Another thing that contributed to its meltdown is the delayed construction of two U.S. nuclear power plants as per Korea Times.

A spokesman of KEPCO said that until now, they have not been contacted yet by Toshiba regarding the sale of the nuclear plant. The company also shared that once they receive a request for the proposal or any sort of official document, they will still have to review it. So far, it is still hard to elaborate on the deal.

KEPCO also made mentioned that nuclear power plant project is a very risky business and investment. This is the reason why it will take some time for KEPCO to reach to a final decision.

The key in KEPCO'S business is risk management and they have to take several steps, in this case, to acquire the said nuclear power plant or not. Many officials from different industries said that since KEPCO wants to become a global nuclear industry leader, it is very much willing to acquire Westinghouse Electric Corporation.

However, KPECO stressed that the case is much more complicated than that belief. It can be remembered that the company was already able to build four nuclear reactors in the United Arab Emirates since 2009.

But KEPCO has not yet able to secure additional deals in the Middle East or any part of the world causing the negative impact on its goal in becoming one of the world's top nuclear plant operators.

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