Peaceful atom for big money

German RWE plans to buy British Energy

The German energy concern RWE has taken a decisive step in the process of taking over the British Energy Group (BEG), which operates nuclear power plants. As London's The Financial Times reported yesterday, citing its own sources, the Germans made an indicative purchase offer, valuing a BEG share at 7 pounds sterling, and the entire company at 11 billion pounds (or 14 billion euros). A RWE representative told Vremya Novostei in this regard that the concern does not comment on “market speculation.”

As can be seen from yesterday's publication, RWE made its offer to pay cash at 700 pence per BEG share a few weeks ago. And currently representatives from Essen are allegedly engaged in an economic analysis of the strengths and weaknesses of the British company. Such steps towards the upcoming large-scale transaction between RWE and BEG seem logical against the backdrop of earlier statements made by the management of the German concern about the existing interest in the construction of nuclear power plants in the UK . And this also fits well within the framework of the program being prepared by the government of this country for the construction of new nuclear power reactors , which should replace those that have exhausted their service life. The fact that BEG is a fairly attractive company is also evidenced, not least by the fact that there are plots of land near the nuclear power plant on which it is possible to build new power units and connect them to the networks at relatively low cost.

The German concern is not alone in its interest in BEG. France's Electricite de France (EdF) is also scrutinizing British Energy Group's economic performance. True, the French, judging by the offer they made, are so far only interested in certain parts of the British company. However, the fact that RWE is going to buy the entire company will most likely force EdF to reconsider its tactics and put forward an offer also for a controlling stake in BEG.

It cannot be ruled out that neither German nor French investors will get BEG. The fact is that the local energy distribution company Centrica is ready to buy it. True, experts from The Financial Times are not too optimistic about its chances. However, they do allow for the possibility of a joint offer between Centrica and EdF.

If RWE’s bid wins, then, as experts have calculated, the UK government will receive about 4 billion pounds from the transaction amount. These funds will go to a fund that will deal with the reclamation of areas under nuclear reactors.

Yuri Shpakov, Berlin