EDF closes in on British Energy deal
French state-owned energy firm EDF and British Gas owner Centrica are closing in on UK nuclear business British Energy, and could announce a £12bn purchase as early as next week.
British Energy, led by chief executive Bill Coley, admitted yesterday “it is in advanced discussions with one party.”
A source close to the deal said that EDF and Centrica are close to a deal that would see the UK gas business take a 25 per cent stake in British energy for £3bn. The government, which owns a 35 per cent stake in the nuclear operator, would net £4bn from the deal.
The source said: “There’s a push to conclude a deal before the holiday. We hope it will be done in the next few days.”
The British Energy board is insisting that EDF pay more than 750p a share, perhaps as much as 775p – which would value the company at well over £12bn – having rejected an offer of 680p made by EDF in May for the business.
Germany’s RWE and Spain’s Iberdrola had also considered a bid for the business that produces one fifth of Britain’s energy through eight nuclear power stations.
Suitors are chasing British Energy because it is well placed to capitalise on the government’s plans to build the next generation of nuclear power stations, because it owns the sites they are likely to be built on.
British Energy shares leapt, closing 56.2 per cent higher to 728.50p in reaction to the news.
