Centrica today furthered its European ambitions by doubling its stake in SPE, Belgium's second largest power generator, giving it control of the energy supplier in a £490 million deal.

Gaz de France, the French gas giant, had been forced to sell its 25.5 per cent stake in SPE as a condition of its £79 billion merger with Suez, its fellow French utility. Centrica already held 25.5 per cent of SPE and had pre-emption rights over GdF's stake.

The British Gas-owner outmanoeuvred EDF, the French energy giant, which agreed to buy the stake two days ago, subject to Centrica not exercising its pre-emption rights.

Centrica is to pay €515 million (£407 million) cash to GdF for the stake. A further €105 million will be paid at a later date, based on the final terms and approval of agreements for SPE to take additional power from Belgian nulear power plants.

SPE has a 20 per cent market share of the Belgian energy retail market, with around 1.5 million energy accounts. It has about 1.6 giggawatts of gas-fired power stations and around 400 megawatts of capacity secured under long-term procurement contracts.

SPE's pre-tax profit was €39 million In the year ended 31 December 2007.

Sam Laidlaw, chief executive of Centrica, said: "Today's transaction is a logical next step in building on our existing stake in SPE; it delivers us a valuable controlling stake in the second largest power generation and energy retailing company in Belgium, which has one of the most dynamic energy markets in Europe."

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax