5 Jan (NucNet): The acquisition of British Energy (BE) by Electricite de France (EDF) was completed today.
Completion of the 12.5 billion pound (GBP) (13.5 billion euro; 18 billion US dollar) purchase, which followed conditional regulatory clearance by the European Commission last month, was welcomed by the British government.
UK secretary of state for business Lord Mandelson said the deal opened the way for new nuclear build in the country which “should provide many billions of pounds more opportunity for the UK supply chain".
The sale, which includes the 36 percent stake in BE held by the UK government's Nuclear Liabilities Fund, raises about GBP 4.4 billion towards the cost of decommissioning BE’s existing nuclear power plants.
In line with conditions required by European competition authorities, EDF has pledged to:
• Divest BE’s coal fired power plant at Eggborough and divest EDF Energy plc's gas fired power plant at Sutton Bridge;
• Sell 5 to 10 terawatt hours of electricity per year in the UK during the period 2012 to 2015;
• Give up one of the combined group’s three grid connection agreements at Hinkley Point.
EDF has also committed to divest, without conditions, one site potentially suitable for the construction and operation of new electricity production facilities adjacent to existing BE nuclear plants at either Heysham in Lancashire or Dungeness in Kent, at the option of the purchaser. This commitment is in addition to the existing conditional commitments to sell land at Wylfa in Wales and Bradwell in eastern England.
