UPDATE: Centrica To Buy British Energy Stake In Weeks -Source
Tuesday January 6th, 2009 / 11h50
(Adds EDF CEO comment from FT interview, background)
By Selina Williams
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- U.K. utility Centrica PLC (CNA.LN) is likely to complete the purchase of a 25% stake in U.K. nuclear operator British Energy Group PLC (BGY.LN) within weeks, a person familiar with the situation said Tuesday.
"Centrica's still interested and looking to proceed with the deal, but it's going to take a few weeks to tie it up," the person said.
Monday, Electricite de France SA (1024251.FR) finalized its GBP12.5 billion acquisition of British Energy. The French utility plans to build four new nuclear reactors in the U.K. from 2017.
Earlier this year, Centrica signed a non-legally binding memorandum of understanding with EDF that gives it the option to acquire 25% of British Energy once the company's sale to EDF has been completed and regulatory approvals obtained.
A 25% stake of this valuation amounts to GBP3.125 billion.
Centrica is keen to have a share in new nuclear power stations in the U.K. as the company has less electricity generating capacity than its rival U.K. utilities and all of it is gas-fired.
EDF Chief Executive Pierre Gadonneix said in an interview with the Financial Times that the deal with Centrica might be completed within two or three months.
"Centrica can be a partner, but it is not the only one for new nuclear," he said.
Gadonneix also called on the U.K. government to streamline its planning and safety process for new nuclear reactors or face delays in their construction.
"Clearly the British government and many stakeholders are aware of the huge need for nuclear development as soon as possible," Gadonneix said.
"If we want to meet the 2017 challenge for the first EPR (European Pressurized Reactor), we must find ways to make the process as fluent as possible...That will take time and that will cost," he said.
Gadonneix's comments follow similar demands last week from the CEO of RWE npower, the U.K. arm of German utility RWE AG (RWE.XE), which is also building new nuclear power stations in the U.K.
Last week, RWE npower CEO Andrew Duff said the U.K. government and regulators need to clear the way for investment in all forms of power generation to guarantee security of supply as older coal and nuclear power stations close.
Company Web site: www.centrica.co.uk
-By Selina Williams Dow Jones Newswires +44 207 842 9262; selina.williams@dowjones.com
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