EDF buys British Energy

FRENCH group EDF has agreed a £12.5bn takeover of British Energy in a move set to kick-start the UK’s nuclear power strategy.

The state-owned utility giant will pay 774p a share, 9p higher than the price offered in July which was rejected as too low by major British Energy shareholders.

British Energy owns eight nuclear plants such as Sizewell and Hinkley Point and one coal-fired power station at Eggborough in North Yorkshire.

EDF, which is over 80% owned by the French state, wants to use them as a bridgehead to build four new French-designed nuclear power stations in the UK using technology from Areva.

As part of the deal, EDF is likely to spin off two of the sites to rival operators, probably at Bradwell and Dungeness.

Centrica, the owner of British Gas, is also expected to acquire a 25% stake in British Energy at a later date.

Prime minister Gordon Brown welcomed news of the takeover as “good value for the taxpayer and a significant step towards the construction of a new generation of nuclear stations”.