GDF Suez takes over Britain's International Power

10th August 2010, Comments 0 comments

French utility group GDF Suez will take a 70-percent stake in British competitor International Power, the groups said Tuesday, creating what they called the world's top independent power company.

GDF Suez will pay a dividend of 92 pence per share to International Power stakeholders for a total price of 1.4 billion pounds (1.68 billion euros, 2.2 billion dollars), the two groups said in a joint statement.

The merger would create "the global leader in independent power generation," said the companies.

The French giant was formed in 2008 by the fusion of the public enterprise Gaz de France and privately held company Suez. It specialises in processing liquefied natural gas and energy production.

International Power runs power plants worldwide.

The announcement came as GDF Suez reported its first-half results of a net profit of 3.6 billion euros, up 9.3 percent on a year earlier, due mainly to a particularly cold winter, the company said in a statement.

The deal "creates the leading global energy player in IPP with strong market positions in Latin America, North America, UK-Europe, the Middle East, Asia, and Australia," GDF Suez's chief executive Gerard Mestrallet said.

International Power's chairman Neville Sims added: "The combined company will benefit from significant synergies, a strong pipeline" of new projects and "broader access to high growth markets for further expansion."

© 2010 AFP

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