Electricite de France

Client: Électricité de France
Practice areas involved: corporate, energy, finance, US securities, EU/competition, tax, regulatory, environmental, real estate and employee incentives
Value: £12.5 billion

Throughout 2008, Herbert Smith advised long standing energy client Électricité de France (EDF Energy), one of Europe’s largest energy groups, on its £12.5 billion takeover of British Energy Group. We continue to advise on its associated plans for New Nuclear Build in the UK.

The transaction required extensive negotiation between the three principal participants, EDF Energy, British Energy and Her Majesty’s Government, with ongoing discussions also taking place with Centrica regarding an option for Centrica to acquire 20% in the bid vehicle post-takeover and to have a commensurate interest in New Nuclear Build.

A groundbreaking transaction in many respects, the offer provided shareholders with a choice between cash consideration and a novel contingent value instrument (called Nuclear Power Notes), issued by Barclays Bank. These notes provide economic exposure to power prices and the output of British Energy’s existing nuclear fleet.

Herbert Smith fielded a very large cross-practice team, primarily based in London, but with representation from other Herbert Smith international offices, including Paris.