Suez, GDF shareholders agree to $159-billion merger

17 July 2008

Mumbai: Suez and Gaz de France shareholders have overwhelmingly approved a long-delayed €100 billion ($159.5 billion) merger that will create Europe's second-largest electricity and gas group.

The GDF Suez group would be the largest gas supplier in Europe and would rank amongst the world's biggest electricity producers. It would account for combined sales valued at €74 billion, and would be ranked alongside Europe's second largest utility company, Germany's E.ON, just behind French power giant EDF.

Speaking to the media, Suez chief executive Gerard Mastrallet said that the shareholders have ''voted today by more than 99 per cent'', and that the vote was both a success and a challenge ''because we have to deliver now and this is our first priority.'' 99.6 per cent of the vote backed the merger.

Gaz de France, in which the French state has an 80-per cent stake, saw a backing by 99.9 per cent of its shareholders.

Ahead of the vote, at the final shareholder meeting of Suez, Mestrallet termed the merger as an opportunity to create a key energy player, while referring to commercial, industrial and geographical synergies between both companies. He said the merger would ''allow us to speed up our industrial development'' with the group choosing to focus on nuclear energy and offering gas and electricity combinations.

Gaz de France CEO Jean-Francois Cirelli told shareholders that the merger would provide GDF Suez with the financial muscle to develop its business, and help all of Europe reduce its dependence on imported gas.