Nuclear takeover collapses

Plans to rejuvenate the UK's nuclear industry could be delayed by years after a French energy firm announced a shock decision to withdraw from its £12bn takeover of British Energy. Shortly before midnight, state-owned EDF released a statement saying: "The conditions for a major development in Great Britain are not met to date."

The Government had intended the takeover to launch the construction of a new generation of power plants. The country's eight existing nuclear plants are due to be retired from service in the coming years, and EDF had been proposing to build four of the new plants, expected to be sited alongside existing power stations.

British energy said that "advanced discussions" with EDF, the world's biggest nuclear power generator, were continuing, but with no guarantee that an offer would be made.