Portfolio recommendation Electricite de France (Paris: EDF, OTC: ECIFF, EDF) has pulled off the biggest acquisition in its history, a friendly bid of GBP12.5 billion (USD23 billion) for British Energy Group Plc (London: BGY).

The deal is a lock to close by early 2009 at the latest, as it enjoys the enthusiastic support of the ruling Labour Party government. It will add plants that currently contribute 19 percent of that country’s electricity as well as transmission infrastructure and land to facilitate construction of a new fleet of advanced reactors over the next decade.

EDF’s official offer of USD35 per share for US utility Constellation Energy Group (NYSE: CEG) has been rejected by the latter’s board, despite being considerably higher than a USD26.50 per share all cash bid by a unit of Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A, BRK.B) The Berkshire tie-up, however, is projected to take at least nine months to jump through needed regulatory hurdles. That leaves plenty of time for EDF to negotiate something in exchange for its nearly 10 percent stake in Constellation, such as a nuclear partnership with Berkshire. Alternatively, it could revisit an even more attractive bid in hopes of luring regulatory and shareholder support. In any case, EDF is indisputably first in the world in nuclear.

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