Fergie's Tech Blog

Toshiba Buys Westinghouse for $5.4B

Ed Oswald writes on BetaNews:

Toshiba agreed Monday to purchase U.S. power plant company Westinghouse for $5.4 billion, far more than the company was expecting to garner through a sale of its assets. The Japanese electronics maker will retain a controlling 51 percent stake of Westinghouse, however several minority investors are expected to come forward before the transaction completes by the middle of the year.

Even though it may seem as Toshiba may have nothing to gain from such a transaction, the conglomerate's wide range of products actually include boiling water reactors. Westinghouse produces the more commonly used pressurized water reactors, used by 60 percent of the industry. But the market has looked at the transaction unfavorably: some say the company may strain itself financially by spreading its resources too thin.

posted by Fergie @ 2/06/2006 09:07:00 AM