24 Sept (NucNet): The UK government has given further details of today�s announcement by Electricite de France (EDF) that it has made an offer to acquire British Energy (BE).

British prime minister Gordon Brown welcomed the move, saying: �New nuclear is becoming a reality. This deal is good value for the taxpayer and a significant step towards the construction of a new generation of nuclear stations to power the country. Nuclear is clean, secure and affordable; its expansion is crucial for Britain�s long-term energy security as we reduce our oil dependence and move towards a low carbon future.�

The UK�s Department for Business, Enterprise and Regulatory Reform (BERR) said EDF's 12.5 billion pound (23 billion US dollars, 15 billion euro) bid, or 774 pence a share, would be one of the largest foreign direct investments ever made in Britain.

BERR said EDF plans to continue operating BE�s existing fleet of eight nuclear power plants and investing in the construction of four new reactor units in England with a combined generating capacity of 6.4 gigawatts electric. �It wants to construct and operate two units each at Hinkley Point in Somerset and Sizewell in Suffolk and has said that under its plans, the first new reactor could be on-stream by the end of 2017.�

The UK government said it has reached agreement with EDF that the company will sell land to other potential nuclear operators at some specific sites in certain circumstances. This move is expected to accelerate development of new nuclear power plants in the UK by making desirable sites available to at least one further potential operator.

Completion of the BE transaction is expected to be in the fourth quarter of 2008 or in early 2009, subject to clearance by European competition authorities and other conditions.

British Energy, 35 percent owned by the UK government, rejected an approach on 31 July 2008 from EDF at 765 pence a share, because its biggest private shareholders said the bid undervalued its nuclear stations and adjacent land.

� by John Shepherd

>>Related reports in the NucNet database (available to subscribers)

BE Announces Life Extensions For Hinkley Point B And Hunterston B (News No. 256, 11 December 2007)

Proposal For Sale Of British Energy To EDF Is Rejected (World Nuclear Review No. 29, 1 August 2008)

EDF Confirms GBP 12.5 Billion Offer For British Energy (News No. 75, 24 September 2008)

Source: NucNet

Editor: editors@worldnuclear.org

24 Sept (NucNet): The US-India Business Council (USIBC), which is a strong supporter of civil nuclear trade with India, yesterday opened permanent offices in New Delhi.

USIBC president Ron Somers said: �It is auspicious that as USIBC establishes a permanent presence in India�s capital, India's prime minister is arriving in Washington to end the technology denial regime imposed against India as embodied in the US-India civil nuclear cooperation initiative.�

In India, USIBC is leasing space from the US-India Educational Foundation, the academic exchange institution originally formed in 1950 and home to the Fulbright and Humphrey scholarships.

On 10 September 2008, US president George Bush formally submitted an agreement for approval by the US Congress for proposed civil nuclear cooperation with India. That followed a decision by the Nuclear Suppliers Group to adjust its guidelines to allow full civil nuclear cooperation between India and the international community.

� by John Shepherd

>>Related reports in the NucNet database (available to subscribers)

US Trade Association Reaffirms Support For Nuclear Trade Deal With India (World Nuclear Review No. 32, 22 August 2008)

Bush Formally Submits Proposed US-India Deal To Congress (World Nuclear Review No. 35, 12 September 2008)

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Source: NucNet

Editor: editors@worldnuclear.org