11 Jan (NucNet): Canada-based Cameco Corporation has obtained all required regulatory approvals and completed the acquisition of Nukem Energy GmbH, a German trader and broker of nuclear fuel products and services.
Under the terms of the agreement, Cameco paid a total of 107 million euro (EUR) (140 million US dollars) on closing to Advent International and other shareholders for the acquisition.
Cameco also assumed Nukem’s net debt, which it said had been reduced to about EUR 84 million since the transaction was announced in May 2012.
The sale completes Advent’s exit from RWE Solutions Group, which Advent acquired from German utility RWE AG in 2006. Advent said last May that the acquisition would be “a good strategic fit” because, thanks to its own long-term uranium supply contracts, Nukem offered access to the Asian market.
Cameco also has agreed to pay Advent a share of Nukem's 2012 earnings. That earn-out payment will be calculated based on Nukem's 2012 audited financial statements, Cameco said. An additional payment might be required in 2015 depending on 2013 and 2014 financial results, it said.
Cameco, which is one of the world's largest uranium producers, said key Nukem personnel have committed to remain with the company and Nukem will continue to operate as a separate entity.
Nukem’s primary business is the purchase and sale of uranium in the form of concentrates (U3O8), uranium hexafluoride (UF6) and enriched uranium product (EUP) for the production of fuel for nuclear power plants.
