Cameco, the world’s largest publicly traded uranium producer, has made a deal to further its resources, offering $136 million for Germany-based Nukem Energy.
In buying Nukem from private equity firm Advent International, Canada-based Cameco will acquire a company with expected sales of between 10 million and 15 million pounds of uranium in 2012. Cameco will also gain access to 4.5 million pounds available under agreements in place through 2013 for downblended highly enriched uranium.
"This acquisition complements Cameco's business by strengthening our position in nuclear fuel markets and improving our access to unconventional and secondary sources of supply," Cameco CEO Tim Gitzel said in a release.
Cameco also will take over Nukem’s debt of $164 million, and the deal promises Advent a share of the company’s future earnings through 2014 under certain conditions. Subject to regulatory approval, the deal is expected to close in the last quarter of this year.