EDF close to buying half of Constellation - report

Dec 16 (Reuters) - Electricite de France SA (EDF.PA) is close to an agreement to buy half the nuclear power business of Constellation Energy Group Inc (CEG.N) for $4.5 billion, Bloomberg reported, citing people familiar with the situation.

Approval by Constellation's board, subject to some conditions, may be announced as early as this week, Bloomberg said quoting a source who remained anonymous because the talks are private.

In September, Berkshire Hathaway Inc's (BRKa.N) (BRKb.N) unit MidAmerican Energy Holdings agreed to pay $4.7 billion, or $26.50 a share, for U.S. power company Constellation, which was on the brink of bankruptcy.

But early in December, France's main electricity provider EDF said it would pay $4.5 billion for 50 percent of Constellation's nuclear assets and give the U.S. company the option to sell it up to $2 billion more of its non-nuclear assets.

If Constellation rejects MidAmerican's offer it would have to issue about 20 million common shares to the company, or about 9.9 percent of its outstanding stock, and pay it about $593 million in cash.

Constellation could not be immediately reached for comment. EDF declined to respond to the report.

EDF sees gaining a foothold in the United States, the world's biggest nuclear energy market, as a key element in its global expansion strategy. (Reporting by Eric Yep in Bangalore; Editing by Jon Loades-Carter)