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Nuclear takeover bid called off Doubt over nuclear takeover bid
(about 3 hours later)
A deal that would have involved the sale of most of the UK's nuclear power stations to a French state-owned energy firm now appears uncertain.A deal that would have involved the sale of most of the UK's nuclear power stations to a French state-owned energy firm now appears uncertain.
EDF had been expected to announce it was buying British Energy which owns eight reactors in the UK. EDF had been expected to announce a £12bn deal to buy British Energy, which owns eight reactors in the UK.
However, EDF put out a statement saying conditions were not right for it to proceed with the £12bn deal. However, EDF put out a statement saying conditions were not right for it to proceed with the deal.
British Energy said "advanced discussions" had continued but that no agreement had been made to date.
It added that there could be no certainty that the talks would lead to an offer being made.
British Energy's nuclear power stations are seen as some of the best sites for new reactors in the UK.British Energy's nuclear power stations are seen as some of the best sites for new reactors in the UK.
Government stakeGovernment stake
The French company said: "After in depth discussions, EDF considers that the conditions for a major development in Great Britain are not met to date." EDF, which is 85% owned by the French government, is the biggest nuclear power generator in the world.
EDF will hold its half-year results meeting on Friday morning as planned. "After in-depth discussions, EDF considers that the conditions for a major development in Great Britain are not met to date," the Paris-based company said in a statement.
The firm, which is 85% owned by the French government, is the biggest nuclear power generator in the world. No indication was given as to what provoked the decision.
A spokesman for EDF in Paris would not comment on whether the deal, which apparently broke down over price, was off or just delayed. A spokesman for EDF in Paris would not comment on whether the deal was off or just delayed.
The announcement came shortly before the firm was due to release its half-year earnings.
The level of interest in nuclear new build remains high...there are strong signals of an appetite for this from the market Department for Business spokesmanThe level of interest in nuclear new build remains high...there are strong signals of an appetite for this from the market Department for Business spokesman
British Energy, which generates about 20% of the UK's electricity, is part-owned by the British government which wants to sell its stake.British Energy, which generates about 20% of the UK's electricity, is part-owned by the British government which wants to sell its stake.
The firm was privatised in 1996 but ended up being bailed out in 2002 by the government after running into severe financial difficulties.The firm was privatised in 1996 but ended up being bailed out in 2002 by the government after running into severe financial difficulties.
It is 35% owned by the government, and the deal would have raise as much as £4bn for the Chancellor. It is 35%-owned by the government, and the deal would have raise as much as £4bn for the chancellor.
Centrica was negotiating with EDF to be its minority partner in the acquisition, and was expected to pay around £3bn for a 25% stake.Centrica was negotiating with EDF to be its minority partner in the acquisition, and was expected to pay around £3bn for a 25% stake.
'Interest high''Interest high'
British Energy's sites are considered prime locations for the government's proposed new generation of nuclear power plants.British Energy's sites are considered prime locations for the government's proposed new generation of nuclear power plants.
EDF has other options for developing nuclear facilities in the UK, having bought land adjacent to two existing nuclear plants.EDF has other options for developing nuclear facilities in the UK, having bought land adjacent to two existing nuclear plants.
A spokesman for the Department for Business, Enterprise & Regulatory Reform said: "Our commitment to nuclear power is clear.A spokesman for the Department for Business, Enterprise & Regulatory Reform said: "Our commitment to nuclear power is clear.
"The go ahead for new nuclear power, alongside our action to promote energy saving and renewables is in Britain's long term national interest."The go ahead for new nuclear power, alongside our action to promote energy saving and renewables is in Britain's long term national interest.
"The level of interest in nuclear new build remains high and recent months have shown there are strong signals of an appetite for this from the market.""The level of interest in nuclear new build remains high and recent months have shown there are strong signals of an appetite for this from the market."
BBC News business correspondent Nils Blythe says although the deal could yet be revived, the latest development is a setback for the government which wants to get the building of new nuclear power stations under way as soon as possible. The BBC's Nils Blythe says although the deal could yet be revived, the latest development is a setback for the government which wants to get the building of new nuclear power stations under way as soon as possible.