NEW YORK (CNNfn) - Global engineering concern Morrison Knudsen Corp. and British Nuclear Fuels Ltd. said Friday they have formed a joint venture to acquire CBS Corp.'s Westinghouse Electric Co. in a $1.2 billion cash-and-debt transaction.
Under the deal, expected to close by the end of the year, the venture partners will pay $238 million cash and assume $950 million in debt. Morrison Knudsen, as majority owner, will control 60 percent of the new entity, paying about $168 million and assuming liabilities of no less than $30 million.
BNFL, through a U.S. holding company, will own 40 percent of the new company.
Westinghouse, based in Monroeville, Pa., provides wide-ranging services and technologies throughout the world. Its Energy Systems Business unit is a global leader in commercial nuclear power technology, servicing more than 400 active nuclear power plants.
Westinghouse also works closely with the U.S. Departments of Defense and Energy, furnishing everything from ship reactor plants to canisters for spent nuclear fuel and dismantled nuclear weapons.
Boise, Idaho-based Morrison Knudsen, builder of the Hoover Dam, is a $1.7 billion construction and engineering firm. The company designs and builds power facilities, manufacturing plants, bridges, pipelines and railroads, and maintains operations in 40 states.
BNFL, a UK giant with $2.5 billion in annual revenues, is involved in all aspects of the nuclear fuel cycle, from manufacture to transport, waste management, and decommissioning.
Westinghouse Chief Charles Pryor will continue to serve as president and chief executive officer of the company. The transaction is subject to regulatory approvals.
Shares of Morrison Knudsen (MK) were off 1/16 at 12-9/16 in late-day trading Friday; CBS Corp. (CBS) stock was up 5/16 at 31-13/16.