Toshiba to up ante in Westinghouse

Kyodo

Toshiba Corp. said Wednesday it will raise its stake in U.S. nuclear equipment maker Westinghouse Electric Co. to 87 percent from 67 percent by acquiring a stake held by a U.S. engineering firm for about ¥125 billion.

The electrical machinery manufacturer said it will buy the stake from the Shaw Group Inc. on Jan. 4 as a subsidiary has exercised its option to sell its 20 percent in Westinghouse.

Toshiba said it will use cash and loans to purchase the shares.

The company said it is considering bringing in new partners to acquire a stake in Westinghouse in order to expand its business and alleviate Toshiba’s financial burden, as long as Toshiba retains a majority stake in the U.S. company.