EdF, Centrica in British nuclear power deal

PARIS - Electricite de France SA said Monday it has agreed to sell a 20 percent stake in nuclear power operator British Energy to Centrica PLC, the U.K.'s largest natural gas supplier, for 2.3 billion pounds ($3.5 billion).

Centrica will pay 1.1 billion pounds in cash and transfer its 51 percent of Belgian power generator SPE to EdF, according to a statement from France's state-controlled power company.

In the statement, EdF Chairman Pierre Gadonneix said the deal paves the way for Centrica and EdF "to take part in the relaunch of nuclear energy in the United Kingdom."

The deal was agreed in principle last summer, but talks bogged down as energy prices fell. The agreement, which the company aims to complete by September, is less than the 25 percent stake originally expected by analysts.

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 European Pressurized Reactors in Britain.

In January, EdF completed a 12.5 billion pound takeover of British Energy, which runs eight U.K.-based nuclear power stations.

The purchase price represents a 6 percent per share discount on what EdF paid to acquire British Energy, Centrica said in a statement.

Centrica is Britain's largest energy supplier for the domestic market. British Energy operates eight nuclear power stations and employs more than 6,000 people.

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