Suez
to merge with Gaz de France: French PM
AFP
PARIS
Petroleumworld.com
02 26 06
Prime
Minister Dominique de Villepin on Saturday announced the merger
of French utility giant Suez with state-run Gaz de France to create
one of the largest gas groups in the world.
"With this merger, we have the ambition to create one of
the top energy groups in the world, in particular in the gas sector,"
he said, adding that the move was motivated by "the strategic
importance of energy for France."
The announcement came after Italian energy group Enel this week
declared an interest in Suez.
Villepin, speaking at his Paris office where he was flanked by
the chairmen of both Suez and GDF as well as Finance Minister
Thierry Breton, made no reference to the Italian company.
The French government, which owns 80 percent of GDF, is guided
by a policy of so-called "economic patriotism" which
calls for French companies and investors to act in the interests
of the country.
Villepin said he would quickly ask parliament to modify legislation
to allow the merger to proceed quickly.
The merger is set against a background of great interest in consolidation
in the European energy sector, touched off by an offer from German
energy group E.ON for Spanish peer Endesa on Tuesday.
Suez and GDF had announced last month that they were to build
two gas-powered power stations in the south of France, which had
suggested friendly relations and hinted at possible future cooperation
between the groups.
The French state is required to own at least 70 percent of GDF
shares under French law.
AFP
02 25 06
Copyright
© 2006 AFP. All rights reserved
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