EDF’s £12bn offer to purchase British Energy, the UK nuclear group, fell through hours before a deal was due to be completed.
It has been speculated that the proposed deal broke down after two of the British Energy's biggest shareholders asked EDF to put more money on the table.
British Energy owns eight nuclear power plants and generates one fifth of the UK's electricity. It is part-owned by the Government which had hoped to sell its stake.
British Energy and the UK government may have to form joint ventures with several different energy companies in order to build new nuclear reactors in the UK. This would mean slower progress for the next wave of nuclear development.
Other energy companies who expressed interest in British Energy earlier this year, include RWE of Germany, Iberdrola of Spain and Vattenfall of Sweden.
