September 25, 2008 at 1:00 am by Tom Lydon
The French power provider Electricite de France is seeking to buy British Energy for $23.2 billion in cash, a move that might enhance nuclear energy exchange traded funds (ETFs).
Prospects for Britain’s nuclear energy industry appear favorable, especially to the French, who believe that this power source can prosper even during a wave of eco-consciousness. The deal has both countries standing behind it, and British Energy’s eight nuclear plants would be given to the French government, reports Greg Keller for Associated Press.
If the deal closes, EdF will plan on opening four more plants in Britain. EdF is already the world’s largest nuclear plant operator, with 58 reactors in France, and the country get 80% of its energy from nuclear power. The takeover would bring more French nuclear knowledge to Britain, which is already searching for ways to diversify its energy sources.
ETFs that are related:
- Market Vectors Nuclear Energy (NLR): down 31.4% year-to-date; EdF is 7.7%; British Energy is 8.1%.
- PowerShares Global Nuclear Energy (PKN): down 19.5% since April 4 inception; EdF holds 2.9% of assets
Tags: Energy, NLR, Nuclear Energy, PKN
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