SK and other South Korean firms consider joint Westinghouse stake investment
In short
SK Group is considering an equity investment in U.S. nuclear company Westinghouse alongside other South Korean firms, local outlets reported on October 14. The proposed consortium would support a government-backed plan to acquire a 5–10% stake, but company contributions and the final investment structure remain undecided.
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SK Group and other South Korean companies are considering a joint equity investment in U.S. nuclear company Westinghouse, according to October 14 reports. The proposed participation would bring private capital into a government-backed acquisition involving Korea Electric Power and Korea Hydro & Nuclear Power. SK said it was reviewing options and had not finalised a decision. Samsung C&T, Hyundai Engineering & Construction and Doosan Enerbility were also reported to be considering participation. [ 1 , 5 , 8 ]
The planned stake is linked to the U.S.–South Korean nuclear cooperation framework. Yonhap reported that the countries agreed to use up to $120 billion from a $200 billion U.S. investment fund to build eight large nuclear reactors in the United States and obtain a 5–10% Westinghouse stake through a South Korean private consortium. The arrangement includes an option to buy shares at a 10% discount to the offering price if Westinghouse lists. [ 9 ]
Maeil Business reported a potential consortium investment of up to 4 trillion won. Kyunghyang Shinmun and Chosun Ilbo reported that a 10% stake could cost about $2.7 billion, or roughly 3.7 trillion won, assuming a $30 billion valuation and the discount. Yonhap cited industry estimates of a $20–30 billion listing valuation, while also reporting foreign-media accounts that Westinghouse sought a valuation above $50 billion. Chosun Ilbo said the companies had not settled investment amounts because the valuation was not yet fixed. [ 2 , 5 , 7 , 9 ]
The government is seeking private participation to ease the financial burden on the two public utilities. Outlets said the investment could offer construction opportunities for Samsung C&T and Hyundai Engineering & Construction, and reactor and steam-generator supply opportunities for Doosan Enerbility. If completed, it could expand SK's nuclear investments from small modular reactors into large nuclear plants. SK and SK Innovation jointly invested $250 million in TerraPower in 2022. Electronic Times reported that participation, investment amounts and the final stake were still undecided. [ 5 , 8 , 9 ]
Why it matters
The government wants private investment to reduce the financial burden on Korea Electric Power and Korea Hydro & Nuclear Power. Outlets said participating companies could expand opportunities in U.S. nuclear construction and equipment supply, while SK could broaden its nuclear interests beyond small modular reactors.
Key facts
- SK said it was reviewing participation in a Westinghouse equity investment and had not finalised a decision. [ 1 , 6 , 8 ]
- Samsung C&T, Hyundai Engineering & Construction and Doosan Enerbility are also considering consortium participation. [ 5 , 8 , 9 ]
- South Korea's nuclear cooperation framework includes a proposed 5–10% Westinghouse stake and a 10% discount to the offering price if the company lists. [ 5 , 7 , 9 ]
- Maeil Business reported that the consortium could invest up to 4 trillion won. [ 2 ]
- SK and SK Innovation jointly invested $250 million in TerraPower in 2022. [ 1 , 9 , 14 ]
Confirmed by several sources
- SK is considering a Westinghouse investment, with no final decision announced. [ 1 , 6 , 8 ]
- Samsung C&T, Hyundai Engineering & Construction and Doosan Enerbility are considering consortium participation. [ 5 , 8 , 9 ]
- The planned acquisition is intended to reduce the public utilities' financial burden through private participation. [ 5 , 6 , 8 ]
Still unclear
- The final participants, contributions, acquisition size and Westinghouse valuation. Companies remain at the review stage; reported valuation estimates differ from the higher valuation sought by Westinghouse.