Suez pulls plug on British Energy bid

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Suez, the giant French utility, had put its hat in the ring as up to 10 British and European power companies jockeyed to take over British Energy, the nuclear generator that supplies up to a fifth of the UK's electricity.

However, Suez said today it is walking away because of more pressing business at home and its merger with the French state gas supplier.

"The completion of the merger with Gaz de France remains Suez's key priority," the company said in a statement. "Accordingly, Suez confirms that in its discussions regarding the future development of the nuclear energy sector in the UK, those relating to a potential offer for British Energy have now ceased."

Because of that statement, the City Code on takeovers will prevent Suez from re-entering the race for British Energy until it completes its GdF merger.

The withdrawal of Suez seems to leave the battlelines for British Energy more cleanly drawn.

EDF, the French electricity monopoly which owns the old London Electricity and Seeboard companies, has made the running with an indicative bid for British Energy believed to be around £10 billion - including the 35% stake in the company held by the UK Government, a legacy of the taxpayer bailout of the company five years ago.

A sole EDF bid is likely to fail on competition issues as it would give the company more than 25% of Britain's generation capacity. Instead it appears increasingly likely EDF will team with British Gas group Centrica.

In competition with EDF is RWE of Germany, which already trades in the UK as npower. It has emerged that it could team with the Southern Electric group Scottish and Southern Energy.