Cameco sells stake in Bruce Power to OMERS for $450M
Cameco plans to keep focus on uranium sales
Saskatoon-based uranium producer Cameco has sold its stake in Ontario’s Bruce Power plant for $450 million.
The buyer of the 31.6 per cent stake is BPC Generation Infrastructure Trust (Borealis), which is owned by Ontario Municipal Employees Retirement System. The takeover was effective Dec. 31.
OMERS, one of Ontario’s biggest pension funds, becomes the majority owner. It first bought into the Bruce Power system in 2003, when British Energy sold its 31.2 per cent stake. TransCanada also owns a stake in the limited partnership.
Bruce Power operates four of the eight CANDU reactors at the nuclear generating facility in Tiverton, Ont., which supplies Ontario Hydro with about 25 per cent of its power.
Cameco CEO Tim Gitzel said his company plans to “reinvest in our core uranium business where we see strong potential for growth.”
The uranium market is poised for an upswing with the expiration of the U.S.-Russia uranium deal.
The price of uranium plunged after March 2011, when a tsunami wrecked Japan’s Fukushima nuclear plant and spilled radioactive water in the country. After the Fukushima disaster, Japan shut down 50 of its nuclear reactors, keeping uranium prices depressed.