French energy giants EDF agreed a £12.5 billion takeover of British Energy. EDF will pay 774p per share, a price 9p higher than the previously rejected offer which delayed the takeover by two months.
This takeover will give EDF control of all British Energy owned nuclear power stations and also includes the intention to develop further power stations in the UK. EDF plan to build four new nuclear reactors for the existing power stations as many of the current reactors are old and will be shut down within the next 15 years.
In addition to these plans, Centrina, owner of British Gas is said to be in talks to take a 25% share of the power generated by EDF in the UK. EDF is already established in the UK as a provider of energy to more than five million customers.
This takeover signals an important change in the way energy is managed in the UK, indicating a move away from dependence on natural energy resources such as oil and coal. It also means a reduced dependence on imported gas. Prime Minister Gordon Brown commented: '"This deal is good value for the taxpayer and a significant step towards the construction of a new generation of nuclear stations to power the country."
The takeover is likely to be controversial, as a largely French-owned company takes over control of British Energy and the future of energy production in the UK. Despite this, the move provides a much-needed cash injection into nuclear energy in the UK and will provide thousands of jobs.
This takeover will give EDF control of all British Energy owned nuclear power stations and also includes the intention to develop further power stations in the UK. EDF plan to build four new nuclear reactors for the existing power stations as many of the current reactors are old and will be shut down within the next 15 years.
In addition to these plans, Centrina, owner of British Gas is said to be in talks to take a 25% share of the power generated by EDF in the UK. EDF is already established in the UK as a provider of energy to more than five million customers.
This takeover signals an important change in the way energy is managed in the UK, indicating a move away from dependence on natural energy resources such as oil and coal. It also means a reduced dependence on imported gas. Prime Minister Gordon Brown commented: '"This deal is good value for the taxpayer and a significant step towards the construction of a new generation of nuclear stations to power the country."
The takeover is likely to be controversial, as a largely French-owned company takes over control of British Energy and the future of energy production in the UK. Despite this, the move provides a much-needed cash injection into nuclear energy in the UK and will provide thousands of jobs.
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