EDF And Centrica Agree British Nuclear Power Deal

JANE WARDELL

LONDON (AP) — Centrica PLC, the owner of British Gas, struck a 2.3 billion pound ($3.5 billion) deal with Electricite de France SA on Monday to take a stake in EDF's nuclear business in Britain, ending months of wrangling over price.

Centrica will pick up a 20 percent stake in nuclear power operator British Energy from EDF in return for 1.1 billion pounds in cash and Centrica's 51 percent stake in Belgian power generator SPE, which is valued at 1.2 billion pound.

EDF and Centrica said they've also agreed to set up a joint venture controlled 80 percent by the French side to build and operate four new longer-lasting EPR reactors in Britain, a type of pressurised water reactor similar to those already in operation in nuclear industry-reliant France.

Creating a partnership to build a new generation of nuclear power stations across Britain helps insure Centrica against volatile energy prices and reduces EDF's exposure to regulatory scrutiny after its 12.5 billion pound takeover of British Energy agreed last year.

Critics had questioned the decision to transfer control of a key industry to a company which is 85 percent owned by the French government.