EdF to acquire British Energy for $23.2 billion

French energy giant, Électricité de France has agreed to buy British Energy for $23.18 billion, in a deal that gives the French company control over eight UK nuclear power plants.

EdF, 84.8 per cent owned by the French state runs all 58 nuclear reactors in France and is the world's largest nuclear plant operator.

EdF offered 774 pence for each BE share, valuing the firm at $23.18 billion or an alternative of 700 pence in cash plus one nuclear power note, a financial instrument linked to BE's future performance.

The deal comes less than two months after talks between the firms broke down, because British Energy's largest shareholders - Invesco and M&G Investment, said the offer price of around 765 pence a share was too low.

The purchase would be made through EdF's subsidiary Lake Acquisitions, which has signed a memorandum of understanding to sell 25 per cent of its stock to British Gas-owner - Centrica.

Centrica would then have the right to 25 per cent of any new nuclear plant's output and provide a sizeable British-owned interest. Centrica said its potential purchase of the stake would be undertaken for a matching 774 pence per share.