Brookfield Business Partners L.P. (TSX:BBU.UN) along with institutional partners entered into an agreement to acquire Westinghouse Electric Company LLC from Toshiba Corporation (TSE:6502) for approximately $4.6 billion on January 4, 2018. The purchase price for substantially all of the global business of Westinghouse Electric Company LLC and its affiliated debtors and debtors-in-possession excludes cash, but includes the assumption of certain pension, environmental and other operating obligations. The consideration is expected to be funded with approximately $1 billion of equity, approximately $3 billion of long-term debt financing and the balance by the assumption of certain pension, environmental and other operating obligations. Brookfield Business Partners will commit to fund approximately 50% of the equity on closing using existing liquidity. Prior to or following closing, a portion of Brookfield Business Partners' investment may be syndicated to other institutional investors. As on January 13, 2018, Westinghouse Electric Company is seeking approval from bankruptcy court for a breakup fee of $75 million if the deal terminates, plus up to $25 million to cover other costs, to be payable to Brookfield Business Partners. Brookfield will keep current Westinghouse employees at their same salary and benefits for a year. The deal is subject to bankruptcy court approval for the Southern District of New York in Manhattan, antitrust approval and customary closing conditions including, among others, regulatory approvals. Closing is expected to occur in the third quarter of 2018. As of January 23, 2018, the transaction is expected to close by March 31. As of March 6, 2018, European Commission approved the acquisition. As of March 27, 2018, the transaction has been approved by U.S. bankruptcy court. As of June 29, 2018, the deal was approved by Nuclear Regulatory Commission.
Tim Coleman, Mark Buschmann, John Singh and Harold Kim of PJT Partners Inc. acted as financial advisors, Howard Chatzinoff, Gary Holtzer, Alexander Wood, Garrett Fail, Robert Lemons, David Griffiths, Mariel Cruz, Andrea Ryken, Sean Devaney, James Higgins, Scott Delaney, Daniel Waxman, Nour Bargach, Chelsea Berry, Mario Carroll, Ben Tansey, James Harvey, Ian Hamilton, Douglas Urquhart, Jeffrey Osterman, Kenneth Heitner, Stuart Goldring, David Irvine, Paul Wessel, Amy Rubin, Joseph Verdesca, Annemargaret Connolly, Douglas Nave, John Scribner, Randi Singer, Ted Posner, Leslie Smith, Brian Drozda, Thomas Goslin, Adam Safwat, Lawrence Baer, Ivor Gwilliams, Jessica Liou, Kevin Bostel, Chris Ballantyne, David J. Cohen, John Conte, Dennis Adams, Daniel Cohl, Stuart Pibworth, Christopher Marotta, Benjamin Brookstone, Amanda Rosenblum, Gabriel Gershowitz, Sarah Bartels, Nafees Saeed, Greg Chafuen, Thomas McCarthy, Elisabeth Sperle, Howard Chatzinoff, Gary Holtzer, Alexander Wood, Garrett Fail, Robert Lemons, David Griffiths, Mariel Cruz, Andrea Ryken, Sean Devaney, James Higgins, Scott Delaney, Daniel Waxman, Nour Bargach, Chelsea Berry, Mario Carroll, Ben Tansey, James Harvey, Ian Hamilton, Douglas Urquhart, Jeffrey Osterman, Kenneth Heitner, Stuart Goldring, David Irvine, Paul Wessel, Amy Rubin, Joseph Verdesca, Annemargaret Connolly, Douglas Nave, John Scribner, Randi Singer, Ted Posner, Leslie Smith, Brian Drozda, Thomas Goslin, Adam Safwat, Lawrence Baer, Ivor Gwilliams, Jessica Liou, Kevin Bostel, Chris Ballantyne, David J. Cohen, John Conte, Michael Godbe, Sasha Shulzhenko, Erin Cartledge, Sean McClay, Christine Paik and David Palmer of Weil, Gotshal & Manges LLP acted as legal advisors and AlixPartners LLP acted as turnaround consultant to Westinghouse. Matthew Feldman, William Gump, John Longmire, Kfir Abutbul, Priya Aiyar, Leonard Klingbaum, François Feuillat, Amir Jahanguiri, Anthony Carbone, Robert Meyer, Spencer Simon, Michael Katz, David Mortlock, Daniel Alvarez, Gianluca Cattani, Faustine Viala, Jonathan Konoff, Jeffrey Clancy, Weston Eguchi, William Thomas, Peter Allman, Andrew Spital, Charles-Antoine Erignac, Daniel Elizondo, Timothy Porter, David Updegrove, Ryan Hartnett, Matteo Matteucci, Daniel Johnstone, Katie Luton, Gabrielle Reddé, Elena Meloni, Michael Marietta, Ji Hun Kim, Debra McElligott, Derek Osei-Bonsu, Mehveen Riaz, John Brennan, Nikki Cassidy, Andrea Hwang, David Axelson, Eric Neidle, Kapiljeet Dargan, Jessica Sutton, Christine Cea, Rachel Dooley, Max Goodman, Annise Maguire, Ryan Stott, Sherrone Torres, Timothy DeKeyser, Timothy Dembo, Noman Goheer, Alex Moyer, Ciara Copell, Timothy Sullivan, Alec Smith and Kyle Burns of Wilkie Farr & Gallagher LLP acted as legal advisors for Brookfield Business. William Gump, Matthew Feldman. John Longmire and Kfir Abutbul of Lazard Frères K.K. acted as financial advisor to Toshiba Corporation. Mitsuhiro Kamiya, Van Durrer II, Scott Hopkins, Annie Li, Chris Mallon, Robert Warnement and Jason Hewitt of Skadden, Arps, Slate, Meagher & Flom LLP and Nishimura & Asahi acted as legal advisors to Toshiba Corporation. Baker McKenzie acted as legal advisor to Westinghouse Electric Company. Andrew Blacoe, Monica Sun, Alison Brown, Matthew Bonye, Martin Dawbney, Brigette Bailie, Edward Dougherty, Silke Goldberg, Dan Hudson, Nicholas Kunz, Tim Leaver, Dongho Lee, Christophe Lefort, Ignacio Paz, Damien Roberts, Emma Rohsler, Yida Xu, Charles Wong, Jie Li, Yunfei Guo, Qiujie Tan, Joseph Fisher, Noriaki Wakabayashi, George Clarke, Simon Evans, Mike Gorton, Matthew Weal, Kearabetswe Modingwana, Martin Bittner, Micaela McLean, Shekhar Sumit, Emily Part, Ken Nam, Miguel Fraga, Iria Calvino, Miguel Angel Barroso, Alberto Martinez and Hilary Lau of Herbert Smith Freehills, Pillsbury Winthrop Shaw Pittman LLP, DLA Piper, Liedekerke Wolters Waelbroeck & Kirkpat, Legance - Avvocati Associati and Kim & Chang acted as a legal advisors to Brookfield Asset Management Inc. parent of Brookfield Business Partners L.P. (TSX:BBU.UN). Credit Suisse acted as financial advisor for Brookfield Business Partners L.P. Rajani Gupta, Todd Koretzky, Jonathan Homer, Zachary Frimet, Adam Haberkorn, Jason Palios, Kate Chapman, Dani Resnick,Dan Guyder, Ben Taylor, Jonathan Cho, Sheila Connell, Chris Andrew, Graham Knight, Keren Livneh, Ken Rivlin, Kuang Chiang, Pierce Young, Dave Lewis, Brian Schultz, Gareth Banfield and Aaron Bradley? of Allen & Overy is advising the joint lead arrangers including, Credit Suisse, Goldman Sachs, Deutsche Bank, BMO, RBC Capital Markets and Credit Agricole, on the $3.6 billion senior secured credit facilities supporting Brookfield Business Partners' $4.6 billion acquisition of Westinghouse. Bär & Karrer AG acted as legal advisor to Brookfiled Business Partners L.P. Rothschild & Sons acted as legal advisor to Baupost Group who controls the consortium.