The UK government is planning to sell its 35.2% stake in British Energy, as part of larger plans to attract investment in the country’s nuclear power sector.
RWE has reportedly made a suggestive cash-only offer of GBP7 per share for British Energy before the UK nuclear company announced talks over its possible takeover. Industry analysts have noted that French energy major EDF is also mulling a bid.
According to industry observers, British Energy’s acquisition by RWE will reportedly be limited in its overall reach, as it would become rather focused in the UK electricity market, with its npower subsidiary already accounting for about 8,000MW of fossil-fueled and clean generation facilities in the country.
The news source noted that British Energy’s plants are considered old and the main attraction for buyers will actually be the sites. Concurrently, the UK government has indicated that it could consider offering state-owned nuclear sites for sale, in a bid to ease competition concerns. Analysts are of the opinion that such a sale might undermine prospective buyer’s interests in British Energy.
