Suez, GDF say regulator approves merger
The French financial market regulator AMF has approved the long-planned merger of giant gas utility Gaz de France and French energy group Suez, the companies said on Monday.
By Agencies |
PARIS: The French financial market regulator AMF has approved the long-planned merger of giant gas utility Gaz de France and French energy group Suez, the companies said on Monday. The boards of the two companies earlier this month approved the merger. The companies said Monday they would hold a joint board meeting on July 22 after the AMF approval.
The plan to create a giant French energy group, which would be one of the largest in the world by market capitalisation, has been dogged by controversy and delays since it was announced two years ago. According to a new plan mooted in September, 22 Suez shares will be swapped for 21 GDF shares.
The difference in market value between the two groups will be made up by putting the majority of shares of Suez Environnement, Suez's main water and waste management arm, on the stock exchange. Each Suez shareholder will receive one Suez Environnement share for every four Suez shares owned.
"The 22nd of July will mark the creation of two world leaders: one in the field of energy and the other in the field of environment," Suez chief Gerard Mestrallet, who will head the new GDF Suez group, said. GDF and Suez together posted a turnover of 74.3 billion euros (114 billion dollars) last year and their combined debt was 15.8 billion euros. Combined net income for 2007 stood at 5.6 billion euros.
The companies said they planned to save one billion euros annually between now and 2013 through synergies.
The plan to create a giant French energy group, which would be one of the largest in the world by market capitalisation, has been dogged by controversy and delays since it was announced two years ago. According to a new plan mooted in September, 22 Suez shares will be swapped for 21 GDF shares.
The difference in market value between the two groups will be made up by putting the majority of shares of Suez Environnement, Suez's main water and waste management arm, on the stock exchange. Each Suez shareholder will receive one Suez Environnement share for every four Suez shares owned.
"The 22nd of July will mark the creation of two world leaders: one in the field of energy and the other in the field of environment," Suez chief Gerard Mestrallet, who will head the new GDF Suez group, said. GDF and Suez together posted a turnover of 74.3 billion euros (114 billion dollars) last year and their combined debt was 15.8 billion euros. Combined net income for 2007 stood at 5.6 billion euros.
The companies said they planned to save one billion euros annually between now and 2013 through synergies.
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