Boards approve Suez and GdF merger
[Suez, GdF, Bloomberg, 3 September]The gas and electricity unit of Suez will merge with Gaz de France (GdF), thetwo companies' boards have agreed. The move will create the thirdbiggest utility in the world behind Electricite de France (EdF) and EOnof Germany. GdF is 80% state-owned and owns Europe's largest naturalgas network, but also sells electricity to 360,000 French customers(the state-controlled EdF, by comparison, supplies electricity to 25million French homes). Suez generates electricity as well as sellinggas and electricity, and has declared a future objective to build andoperate Generation-III nuclear power plants. It owns Electrabel, whichoperates seven nuclear units in Belgium, three of which it owns. Themerger could effectively place the Belgian plants under French statecontrol: the new company, to be called GdF Suez, will be over 35% ownedby the French state. The merger has not been greeted enthusiastically inall quarters, with French unions reported to be opposed to it andinvestment companies expressing concern at what one described as the"creeping nationalization of Suez." As part of the deal, 65% of Suez'senvironment activities will be spun off at the same time as the merger,which could be completed in early 2008.
[Suez, GdF, Bloomberg, 3 September] The gas and electricity unit of Suez will merge with Gaz de France, the two companies' boards have agreed. The move will create the third biggest utility in the world behind Electricite de France (EdF) and EOn of Germany. GdF is 80% state-owned and owns Europe's largest natural gas network, but also sells electricity to 360,000 French customers (the state-controlled EdF, by comparison, supplies electricity to 25 million French homes). Suez generates electricity as well as selling gas and electricity, and has declared a future objective to build and operate Generation-III nuclear power plants. It owns Electrabel, which operates seven nuclear units in Belgium, three of which it owns. The merger could effectively place the Belgian plants under French state control: the new company, to be called GdF Suez, will be over 35% owned by the French state. The merger has not been greeted enthusiastically in all quarters, with French unions reported to be opposed to it and investment companies expressing concern at what one described as the "creeping nationalization of Suez." As part of the deal, 65% of Suez's environment activities will be spun off at the same time as the merger, which could be completed in early 2008.
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