What was once viewed as a slam-dunk deal and partnership between Electricite de France SA (EDF) and British Energy Group PLC has hit a snag, putting at risk the British government’s plan to revamp the ailing U.K. nuclear-energy program. But regardless of the deal’s outcome, the future of atomic energy remains bright in Europe, and even brighter in the world’s emerging markets.

After months of discussion, and with the British government’s approval, EDF was set to unveil a $23.5 billion, all-cash offer for British Energy on Aug. 1. But British Energy investors unexpectedly rejected the bid, sending the EDF back to the negotiating table and jeopardizing plans to refurbish the United Kingdom’s rapidly deteriorating nuclear-energy program.

The Department of Business and Enterprise had planned to trumpet the deal as a key stage in its plans for a second generation of U.K. nuclear power plants, hoping that EDF would bring an influx of French nuclear technology to the country along with four new nuclear reactors.

"EDF was the Government’s ‘get out of jail free’ card which hasn’t materialised - there are tough decisions to be made as the reality is Britain will run short of power," David Hunter, an energy analyst at consultancy McKinnon & Clarke, told The Independent.

British Energy, which is 35%-owned by the British government, supplies roughly 6% of that nation’s energy needs. But half of British Energy’s 16 nuclear reactors haven’t produced energy in the past two weeks and at least four of those shut down since last year due to age-related maintenance problems.

EDF, the world’s largest owner of nuclear power stations, seemed like the perfect candidate to help Great Britain achieve its nuclear goals - and to solve an emerging energy crisis. But after months of talks - and even after an increase to EDF’s intial bid in May - the deal was rejected, leaving only questions about Britain’s nuclear future.

Of course, those questions could be answered sooner than many critics think.

A Change of Plans

EDF has not ruled out making a what would be its third offer for British Energy, saying only that "conditions for a major development in Great Britain are not met to date." 

"British Energy would have been an ideal entry point for EDF, and EDF may have regrets about the deal not happening… this doesn’t at all slam the British nuclear door in their face," Colette Lewiner, an energy sector expert at French management consultancy Capgemini, told Reuters.