Centrica considers British Energy merger

British Gas parent Centrica confirmed today that it was considering a merger with British Energy if the EDF takeover deal falls through.

Centrica is in talks with the French utilities giant over taking a minority stake in the nuclear power firm, but said it was looking at a merger as one of a number of alternative options.

EDF’s expected £12bn bid failed to materialise on Friday amid reports that the deal was scuppered by the opposition of two institutional shareholders, who were holding out for a higher price.