EDF pulls out of British Energy takeover

Friday, Aug 01, 2008

The UK’s ambitions of nuclear regeneration were thrown to the wind today, as French energy giant EDF pulled out of discussions on the eleventh hour.  Shareholders argued that soaring energy demands and rising costs, put British Energy (BE) in the position for a better offer.

EDF had been expected to confirm the £12 billion takeover; however the French state-owned firm felt conditions were not right for their nuclear development within the UK.

France is a world leader in nuclear technology, assisting many countries seeking to develop their nuclear presence, particulary in the Middle East.  BE is 35 percent owned by the British Government and aimed to update their nuclear stations with the aid of EDF.  BE currently operates eight dated nuclear reactors in the UK.

Reports say the embarrassment could have been avoided, had BERR not sold their stake in the company.  The takeover could have seen the requirements of non-fossil fuel energy fulfilled; however the ‘advanced discussions’ have not led to the desired results for the UK's overhaul.

EDF has other options in UK for nuclear development; with two sites adjacent to land they have purchased. EOn, RWE, and Iberdrola, as well as UK firm Centrica have mulled the takeover; however the recent turn of events has seen shares in BE tumble.

Source: Red Mist Media