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USEC Inc. Message Board

  • splanton splanton Jan 15, 2013 6:59 AM Flag

    U industry note

    Indian Express this morning) (snip):
    Russia's state uranium company has agreed to pay C$1.3 billion (US$1.32 billion) to take Canada's Uranium One Inc private, as the successor to the Soviet Union's nuclear industry seeks to strengthen its grip on supplies.

    Atomredmetzoloto and its Effective Energy N.V. affiliate - together known as ARMZ - said on Monday they would buy the shares of Uranium One they do not already own in a deal valuing Canada's No.2 uranium producer at C$2.74 billion ($2.8 billion).

    The deal sent the stock up more than 14 percent on Monday to close at C$2.76 on the Toronto Stock Exchange. That was below the C$2.86 per share offer price, suggesting some uncertainty over the outcome.

    ARMZ currently owns 51.4 percent of Uranium One's common shares. If successful, the full takeover would help ARMZ consolidate control over uranium assets in the former Soviet Union and also strengthen access to reserves in Australia and the United States.

    It will also leave just two major publicly listed, pure-play uranium producers - Canada's Cameco Corp and France's Areva SA.

    Demand for uranium, used mainly as fuel for nuclear reactors, has come under pressure since the March 2011 earthquake and tsunami in Japan triggered a meltdown at the Fukushima-Daiichi atomic power plant.

    The disaster led countries such as Germany and Japan to back away from nuclear power. China, India and Russia are all pushing ahead with new reactors, but in a more measured fashion.

    The price of uranium price has fallen from about $68 a pound before Fukushima to around $43, while shares of Uranium One have more than halved in value.

 
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