Japanese technology giant Toshiba is set to buy Westinghouse Electric Company, a U.S. nuclear power plant builder, from a British government-owned company.
British Nuclear Fuels says it chose Toshiba as the preferred bidder for Westinghouse, and will recommend the deal to its board for approval later this week. Toshiba made the highest offer for the U.S. company, surpassing rival bids from General Electric and Mitsubishi Heavy Industries.
The value of the bid was not disclosed, but media reports say Toshiba will pay $5 billion, a much higher price than analysts had expected.
Industry watchers say the deal will help Toshiba take advantage of renewed interest in the United States in nuclear power. They say Toshiba will also improve its chances of building nuclear power plants in China and India, where energy demand is booming.
Some information for this report was provided by AFP, AP and Reuters.