Centrica & EDF to Form JV
to Build N-Power Plants

The French owner of British Energy, Centrica and EDF have agreed on a deal in which Centrica will take a 20pc stake in the company for £2.3bn. EDF and Centrica will also form a separate 80/20 joint venture to build four nuclear power stations.

EDF Chairman & Chief Executive Pierre Gadonneix said: "This transaction, part of the group's strategy of developing its positions in Europe, will enable leading British generator, Centrica, alongside EDF, to take part in the re-launch of nuclear energy in the United Kingdom."

As a further part of the deal, EDF will take Centrica's 51pc stake in Belgian power company SPE, an asset which EDF it is understood to have been interested in for some time.

Roger Carr, chairman of Centrica, said: "The deal represents good value for Centrica shareholders, improves the strategic balance of our business and further underpins our green energy credentials."

The deal is expected to be completed by the end of the third quarter of 2009.