FCU:CC - Nuclear Revival Spurs Flurry of Uranium M&A
Nations are turning their attention and budgets toward nuclear energy and it has spurred a series of sizable M&A deals in the space.
One of the most memorable announcements in 2022 came in October when Cameco, one of the world’s largest uranium producers, and Brookfield Renewable Partners formed a strategic partnership to acquire Westinghouse Electric Company in a deal valued at US$7.8 billion. The deal will give Cameco a 49% controlling interest in “one of the world’s largest nuclear services businesses.”
Uranium Energy Corp. has also been on a uranium buying spree over the last year. In December 2021, the company acquired Uranium One Americas. In June 2022, UEC bought Canada-listed UEX Corp. in an effort to “create the largest diversified North American focused uranium company.” The deal, which is valued at $192.7 million primarily of UEC stock , marks the largest M&A transaction in the North American uranium sector after the U1A acquisition by UEC in 2021.
Then, just four months later, UEC revealed its plans to acquire the world-class Roughrider uranium development project in Saskatchewan from Rio Tinto for $150 million.
Rising M&A in North American uranium projects comes at a time when officials in Canada and the US are calling for greater uranium and nuclear cooperation between the two countries to help reduce US imports of uranium from Russia.
In fact, nuclear fuel buyers across the globe are shying away from major suppliers Russia and Kazakhstan amid ongoing conflict, making uranium projects in countries like Canada an important part of the nuclear resurgence.
Canada is the second-largest producer of uranium on the planet, accounting for roughly 13% of total global output, and has the world’s highest-grade uranium deposits.
The country is also home to some of the only projects th...
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