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| Centrica in British Energy deal | Centrica in British Energy deal |
| (30 minutes later) | |
| British Gas owner Centrica has said it is buying a 20% stake in nuclear firm British Energy for £2.3bn. | British Gas owner Centrica has said it is buying a 20% stake in nuclear firm British Energy for £2.3bn. |
| Centrica had first agreed a £3.1bn deal with British Energy's French owner EDF last summer, and this would have seen it take a 25% stake. | Centrica had first agreed a £3.1bn deal with British Energy's French owner EDF last summer, and this would have seen it take a 25% stake. |
| However, talks on the deal had dragged on after electricity prices fell. | However, talks on the deal had dragged on after electricity prices fell. |
| EDF's £12.5bn takeover of British Energy, which runs eight UK nuclear power plants, was concluded in January of this year. | EDF's £12.5bn takeover of British Energy, which runs eight UK nuclear power plants, was concluded in January of this year. |
| Centrica and EDF plan to build four new nuclear plants on existing sites as part of the the UK government's plans for the country to get more of its electricity from nuclear generation. | |
| BRITISH ENERGY'S NUCLEAR PLANTS TornessHartlepoolSizewell BDungeness BHinkley Point BHeysham 1Heysham 2Hunterston B | |
| Analysts say it is this likely expansion that makes British Energy such an attractive investment. | Analysts say it is this likely expansion that makes British Energy such an attractive investment. |
| In a statement, Centrica said: "The deal should be positive for both customers and investors - it lowers our exposure to energy price volatility." | |
| EDF said the deal would enable Centrica to take part in the re-launch of nuclear energy in the UK. | |
| The deal is subject to regulatory approval but Centrica said it did not anticipate any problems. | |
| Centrica also said that EDF would purchase its 51% stake in Belgian electricity generation firm SPE for £1.2bn. | |
| Sensitive industry | |
| EDF is the world's biggest operator of nuclear power stations. | |
| When EDF's move to take over British Energy was first announced, critics questioned whether it made sense to transfer control of a sensitive industry to a firm that was 85%-owned by the French government. | |
| British Energy's eight existing power stations are Dungeness B, Hartlepool, Heysham 1, Heysham 2, Hinkley Point B, Hunterston B, Sizewell B and Torness. | |
| It plans to build new ones at Hinkley Point and Sizewell. |