EDF to buy British Energy

French utility EDF has agreed to pay £12 billion for nuclear generator British Energy. EDF has also signed a memorandum of understanding with Centrica that will allow the UK utility to take a 25% stake in British Energy for £3 billion.

British Energy’s board unanimously accepted EDF’s 774 pence per share offer, an improvement of 9 pence per share on EDF’s rejected July offer. The deal gives EDF control of eight of the UK’s ten nuclear power stations, and EDF hopes to construct four new nuclear power stations while allowing other energy companies access to nuclear sites for further new build.

EDF’s potential deal with Centrica will allow Centrica to off take 25% of the power generated by existing British Energy sites, with an