Spain's Gas Natural approves merger with Union Fenosa

27th June 2009, Comments 0 comments

Shareholders of Spanish energy group Gas Natural on Friday approved a merger with its electricity subsidiary Union Fenosa.

Madrid - Shareholders of Spanish energy group Gas Natural on Friday approved a merger with its electricity subsidiary Union Fenosa.

"The merger, which should be formally completed in September, will end the process of acquisition of Union Fenosa by Gas Natural launched less than a year ago," Gas Natural said.

On Monday, the boards of Union Fenosa and another member of the group, Union Fenosa Generacion, are also expected to approve the merger.

Gas Natural has said the new merged firm will be the biggest integrated gas and electricity firm in Spain and one of the 10 biggest in Europe, with 20.2 million clients worldwide and a presence in 23 nations.

The group in July last year announced plans to acquire Union Fenosa by buying the 45 percent interest held by Union Fenosa's leading shareholder, the construction firm ACS.

The group then raised its stake to 50.02 percent and, consistent with Spanish law, launched a bid to acquire the outstanding shares.

AFP / Expatica

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