Centrica today confirmed that they are still in discussions with Electricité de France S.A (‘EDF') on the possibility of Centrica taking an equity stake in British Energy and that these discussions extend to the possible sale to EDF of Centrica's 51% interest in SPE.
– By Linton Levy –
The companies expect these discussions to conclude within the next few weeks, however, there is no certainty as to whether any agreement will be reached.
Centrica is negotiating for a 25 percent stake in British Energy to increase electricity production in its biggest market after EDF, Europe’s largest power producer, bought the U.K. nuclear generator for $18.6 billion USD in January. EDF was beaten by Centrica to the acquisition of a 25.5 percent stake in SPE sold by Gaz de France SA this last year.
EDF confirmed its negotiations over SPE, adding: "This purchase would allow EDF to boost its presence in Benelux, a region it considers strategic."
Centrica agreed last year to buy 25 percent of British Energy from debt-ridden EDF for about 2.92 billion pounds but is now trying to bring down the price due to a sharp fall in energy prices.
SPE is Belgium's second-largest electricity company with around 1.6 million customers and a fifth of the market. The 49 percent of the company not owned by Centrica belongs to Belgian banks and municipalities.