UK's nuclear power firm sold to French

FRENCH utility group EDF Energy has today agreed to buy British Energy for £12.5 million in a move that is expected to kick-start the UK's nuclear power strategy.

The state-owned firm's Lake Acquisitions subsidiary said it will pay 774p a share for the company, which owns Torness Power Station in East Lothian.

It is 9p higher than the price it offered in July when major British Energy shareholders said the bid was too low.

And Scottish Gas owner Centrica is also in talks to buy a 25 per cent stake in the new British Energy following the deal, it said today.

The deal has been welcomed by Prime Minister Gordon Brown as "good value for the taxpayer and a significant step towards the construction of a new generation of nuclear stations".

Today's agreement will see EDF take control of all of British Energy's (BE) nuclear power stations and play a leading role in the development of new stations in the UK, which are likely to be built on BE's existing sites.

It will also allow the UK Government to bank a multi-billion pound windfall from its 36 per cent stake in the firm.

EDF said today it planned to build four new nuclear reactors in the UK and would maximise the potential of British Energy's eight nuclear power stations.

But the Government has stressed that it wants other players in Britain's nuclear power industry.

British Energy employs around 6,000 staff and produces around a sixth of the UK's electricity.

Sir Adrian Montague, chairman of British Energy, which used to be headquartered in Livingston but has now returned to its former HQ in East Kilbride, said: "Today's announcement will enable us to build on the work started at the time of the relisting of the company in January 2005.

"It will also allow us to develop fully British Energy's role in new nuclear build, improve British Energy's financial strength and in so doing help create a secure, long term future for our business and our staff. Together, the businesses of EDF and British Energy will have broader access to markets and a unique blend of engineering expertise, project management skills and physical assets available for the development of new nuclear build in the UK."

Pierre Gadonneix, chairman and chief executive of EDF, said: "There is a great fit between our companies. Combining the people, knowledge, skills, experience and assets of EDF and British Energy will set the standard for the delivery of safe, economic, low carbon generation both in Britain and around the world.

"This paves the way for huge investment in secure, economic energy supplies. This investment will help secure affordable energy for our customers. It is a responsible step towards addressing their concerns about wholesale energy prices and dwindling world fossil fuel supplies."