EDF to buy up Constellation's nuclear investments in Unistar
French energy group EDF and Constellation Energy announced Tuesday they had reached an agreement to restructure their partnership, with EDF taking full ownership of UniStar Nuclear Energy.
Under the terms of the agreement, approved by the boards of directors of both firms, EDF will purchase Constellation's 50 percent stake in UniStar for 140 million dollars, becoming the nuclear energy enterprise's sole owner.
Allied since July 2007, Constellation and EDF developed closer ties after the French firm bought half of the American company's nuclear investments in December 2008. It won that bid after a battle pitting it against American billionaire Warren Buffett.
But the relationship between EDF and Constellation has since soured, with Constellation less keen on espousing EDF's nuclear ambitions.
The two groups were namely butting heads over a 2008 clause that could force EDF to purchase hydroelectric plants from Constellation for two billion dollars, a price deemed too high by the French firm.
© 2010 AFP