European firms bid for BE
EUROPEAN power firms are courting British Gas owner Centrica about a possible £10bn-plus joint bid for British Energy, which owns Hartlepool nuclear power station.
A clutch of continental power companies – led by France’s EDF and Germany’s RWE – are reportedly vying to take control of BE, which operates all of Britain’s nuclear power stations and is expected to play a major role in the proposed development of the next generation of nuclear power supply.
Centrica is thought to have been keen to bid on its own, but it has been held back by a lack of financial firepower and declining share price. It is now being approached by European firms. Centrica had started talks with EDF about “a British-led solution” over the future of British Energy, a Sunday newspaper said. A proposal would involve buying the Government’s 35% holding as well as the company’s listed majority stake. However, Centrica’s lack of expertise in the nuclear industry may encourage the Government to consider an approach from EDF.
Any takeover for British Energy may see EDF forced to sell some of its British assets to avoid the UK’s nuclear capacity being in the hands of a single overseas business.
