And now Westinghouse

January 31, 2017

Ailing Toshiba may sell Westinghouse to pare risks from nuclear business

http://www.japantimes.co.jp/news/2017/01/31/business/corporate-business/ailing-toshiba-may-sell-westinghouse-pare-risks-nuclear-business/#.WJCEqvKDmos

JIJI

Struggling electronics and machinery giant Toshiba Corp. is considering selling U.S. subsidiary Westinghouse Electric Co. as one of its options in an ongoing review of its overseas nuclear operations, sources have said.

Toshiba is expected to suffer a loss of up to ¥680 billion from its U.S. nuclear plant business.

Against this background, Toshiba aims to eliminate risks of incurring further losses in the future by selling Westinghouse or lowering its equity stake in the unit that builds nuclear power plants, the sources explained.

At a news conference on Friday, Toshiba President Satoshi Tsunakawa unveiled a plan to review his company’s nuclear operations abroad.

As it appears difficult for Toshiba to find a buyer of Westinghouse, which is reeling under heavy losses, the parent company is considering various options, including selling some of the unit’s profitable segments, such as nuclear fuel business.

Toshiba bought Westinghouse for some ¥490 billion in 2006.

On the back of strong global demand for nuclear power plants, Toshiba had aimed to make nuclear operations its core business area along with semiconductors. Westinghouse is currently constructing four nuclear reactors in the United States and the same number in China.

Toshiba will announce on Feb. 14 a precise amount of its nuclear business loss and corrective measures, and its earnings for April to December last year.

Toshiba is set to separate its nuclear operations from its energy division and place them under the direct supervision of Tsunakawa.