SK Group is reportedly forming a consortium with domestic nuclear companies to consider a strategic equity investment in the U.S. nuclear firm Westinghouse. If the investment materializes, SK Group's nuclear business is expected to expand from next-generation small modular reactors (SMRs) to large nuclear power plants.
According to industry sources on October 14, SK Group is evaluating an investment in Westinghouse's equity, with estimates suggesting the investment could reach trillions of won. Samsung C&T, Hyundai Engineering & Construction, and Doosan Enerbility are also said to be considering participation in the consortium led by SK Group.
Recently, the U.S. and South Korea agreed to invest up to $120 billion from a $200 billion investment fund to construct eight large nuclear power plants in the U.S. The South Korean private consortium is expected to secure a 5% to 10% stake in Westinghouse, with conditions allowing for acquisition at a price 10% lower than the public offering price upon listing.
Industry estimates place Westinghouse's corporate value at between $20 billion and $30 billion at the time of its IPO. According to foreign media reports, the company aims for a valuation exceeding $50 billion during its public offering.
Meanwhile, SK has been increasing its global nuclear investments to meet rising electricity demand driven by the expansion of artificial intelligence (AI). This investment could serve as a pivotal step in broadening its business scope into the large nuclear power market.
* This article has been translated by AI.
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