French energy firm EDF has agreed to buy British Energy, the firm which operates the UK's eight nuclear power plants, in a Ј12.5bn deal. Anger over Ј1bn Centrica profits ...
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In addition, British Gas-owner Centrica is in talks with EDF to take 25% of all power generated by British Energy once it is in French hands.
It will also take a 25% stake in all new nuclear plants built by EDF.
British Energy's power plants generate an estimated 14% of the electricity supply in the UK.
EDF's bid values British Energy at 774 pence a share, nine pence more than a previous bid which was rejected.
The deal is set to be controversial, BBC business editor Robert Peston says, because it will be seen by some as handing the UK's nuclear future to a company owned by the French state.
Centrica's investment, which will cost it about Ј3bn, may placate some critics.
The deal with EDF is seen by Centrica as vital to reducing its dependence on imported gas.
EDF was set to buy British Energy in July this year, but the deal was called off on the eve of the announcement when shareholders protested that it was being sold too cheaply.
(BBC)
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