British Energy confirms takeover talks

Source: Energy Digital

Date :17/03/2008 17:25:33

Nuclear power generator British Energy Group has announced that it is currently in the early stages of talks regarding a £59 million takeover.

Following announcements a month ago that the company was considering selling to foreign buyers in order to begin development of the next generation of power plants – and reports at the weekend that the government is considering selling its thirty six percent stake in the group – it was today announced that “the company is in discussions with interested parties in the context of its future.”

A BERR spokesperson commented that “the Government is monitoring developments closely and will consider its position in relation to any proposal in the public interest, having regard to its objectives in relation to energy policy and its obligations to the taxpayer,” adding that since British Energy’s shares are listed on the stock market it would be “inappropriate to comment further.”

Shares in the energy group were up by sixteen per cent shortly after the London market opened this morning.

Future plans

Although there is no guarantee of an offer being made, it is hoped these discussions will lead to a business combination or an offer being made to the company by any potential parties- including Germany’s E.ON AG and RWE, French giant EDF, Spanish Iberdrola and British Gas owner Centrica.

Responsible for the supply of around one sixth of the UK’s electricity, British Energy is the country’s largest nuclear power provider. Therefore if bids to sell are successful, the company will take a pivotal role in the development of a new nuclear power programme.

Decommissioning plans will be made for the company’s eight existing power stations located in Kent, Lancashire, Somerset, Ayrshire, Suffolk and East Lothian.

The government announced earlier this month that it will make up to eighteen more sites around the UK available.

March 17, 2008