CCJ - Why Is Cameco (CCJ) Stock Down 15% Today?
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Cameco (NYSE:CCJ) stock is slipping on Wednesday after the company announced its intent to acquire Westinghouse Electric Company.
Cameco isn’t buying Westinghouse Electric on its own. The company is forming a strategic partnership with Brookfield Renewable Partners (NYSE:BEP) that will see them splitting ownership of the nuclear power company.
That deal will see Cameco hold a 49% stake in Westinghouse Electric. The remaining 51% will belong to Brookfield Renewable. This has them sharing the $4.5 billion equity cost with Cameco covering $2.2 billion and Brookfield Renewable handling the other $2.3 billion.
Cameco notes that it has the funds on hand to support its part of the Westinghouse Electric acquisition. However, it’s seeking out alternatives to fund the deal so as to maintain its balance sheet.
CCJ CEO Commentary
Tim Gitzel, president and CEO of Cameco, said the following about the deal.
“We expect the recurring demand for Westinghouse’s operating plant services and nuclear fuel will generate a strong revenue stream and add stable cash flow to complement Cameco’s existing uranium and fuel services business.”
News of the acquisition deal has shares of CCJ stock seeing heavy trading on Wednesday. As of this writing, more than 29 million shares of its stock have changed hands. That’s a major increasing over its daily average trading volume of about 6 million shares.
CCJ stock is down 15% as of Wednesday morning.
Investors can find more of the latest stock market news below!
We’ve got all of the most recent news traders need to know about for Wednesday! That includes why shares of Moderna (NASDAQ:MRNA), KnowBe4 (NASDAQ:KNBE), and Intel (NASDAQ:INTC) stock are on the move today. You can catch up on all of that news at the following links!
More Wednesday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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