Centrica to chase nuclear plans
British Gas owner Centrica is pushing ahead with plans to move into nuclear power and is still interested in a £22billion merger with British Energy, it emerged yesterday.
Centrica’s nuclear ambitions were dealt a blow on Friday when France’s EDF pulled out of a £12billion takeover plan for the reactor operator.
EDF had widely been expected to bring in Centrica as a partner on the deal, to help ease political concerns about a strategically important industry falling into foreign ownership.
Although EDF and British Energy have left the door open to further talks and a new deal, Centrica is said to be exploring alternatives.
One possibility is that Centrica’s chief executive Sam Laidlaw could sound out the Government, owner of a 35 per cent stake in British Energy, and key City investors about support for a merger. However, a City source said yesterday: “Centrica does not have the cash to buy British Energy outright and it’s not clear that there is any appetite for an all-paper merger.”
Laidlaw’s other option is to pursue joint ventures with British Energy to secure supplies from reactors.
