Toshiba Corp. announced Wednesday it will buy out Shaw Group Inc.’s 20 percent stake in Westinghouse Electric Co. for about $1.6 billion by January, according to The Wall Street Journal.

Toshiba already owns 67 percent of Westinghouse, a nuclear power plant specialist.

In September 2011, Shaw announced it planned to sell its piece of Westinghouse to Toshiba, a move designed clear around $1.7 billion in debt from the Baton Rouge-based company’s books.

Shaw and Toshiba bought Westinghouse in 2006. Toshiba paid about $4.2 billion for 77 percent of Westinghouse, while Shaw issued $1.1 billion in yen-backed bonds to buy its piece. But with the yen’s increasing strength against the dollar, Shaw’s original debt ballooned to around $1.7 billion last year.

The Westinghouse deal included an option that allowed Shaw to sell its share of Westinghouse to Toshiba between March 2010 and March 2013. Although Shaw sought permission to sell the bonds earlier, the Bank of New York Mellon, the bondholder trustee, rejected that request in December. At the time, Shaw said that meant the bonds would not be repaid until March 15, 2013.