Centrica, the owner of British Gas, will have a 25% stake in the company.

The deal with EDF will see the French group take control of almost all the UK's nuclear power stations and sites earmarked for further expansion of the UK nuclear sector. Four new nuclear plants are to be built, with the first ready by 2017.

The UK Government has committed to accept the cash offer of 774p per share for its 36% stake.

Prime Minister Gordon Brown said: "This deal is good value for the taxpayer and a significant step towards the construction of a new generation of nuclear stations to power the country".

Centrica will pay £3.1bn and agree to buy 25% of the electricity generated by British Energy's reactors with an option to take a 25% stake in any new nuclear power stations.