French groups Suez-GDF combine to form global energy giant

AFP, July, 2008

PARIS (AFP) — A global energy giant emerged Wednesday after shareholders in French groups GDF and Suez approved a tie-up despite domestic political opposition and misgivings by EU officials.

Shareholders in both companies, in separate general assemblies, endorsed the merger, with the official launch of the giant utility set for July 22, capping a tortuous procedure that began in February 2006.

In the marriage of Gaz de France, a public enterprise, and privately held Suez, which has energy, water and waste treatment operations, the French government hopes to establish a national energy champion, capable of winning business in the European and international arena.

Suez chairman Gerard Mestrallet described the deal to create GDF Suez as "one of the largest mergers in France in the last 20 years," with the new group to have a stock market value of 93 billion euros (148 billion dollars) and employ nearly 200,000 people. ...