EDF Close to British Energy Deal

Energy company EDF offered £12.5 billion to take over British Energy this week, a move seen as key to plans for new nuclear power in the UK. It proposes two new reactors at both Hinkley Point and Sizewell. In an agreement with the government, EDF also confirmed that it will sell land to other potential operators.

Yesterday, EDF revealed it had spent Wednesday buying almost 275 million British Energy shares at 774p, giving the company a 26.5 per cent stake in British Energy, which is in addition to the 45.2 per cent of shareholders who have given irrevocable undertakings to accept the EDF bid.

Between its holding and undertakings it now controls almost 72 per cent of the company, not far short of the 75 per cent which it requires to take the company private

EDFhas said that its preferred option is to build four European pressurised reactors (EPRs) at two of the British generator’s eight nuclear sites,Hinkley Point in Somerset and Sizewell in Suffolk.

It also said that it would sell land at three other sites it controls to rival developers: Wylfa in Anglesey, Bradwell in Essex and either Heysham in Lancashire or Dungeness in Kent, as part of a government-brokered agreement designed to ensure competition in the development of new stations.