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| French utility firms agree merger | French utility firms agree merger |
| (20 minutes later) | |
| French utility groups Suez and Gaz de France (GDF) have agreed to merge to create one of the world's largest energy firms, worth 70bn euros (£47bn). | |
| Both firms have been trying to merge since 2006, but a final deal was agreed over the weekend following meetings between both firm's boards. | Both firms have been trying to merge since 2006, but a final deal was agreed over the weekend following meetings between both firm's boards. |
| Under the terms of the deal, the French government will hold more than 35% of the new firm - to be called GDF Suez | |
| The deal has faced opposition from unions who fear job losses. | The deal has faced opposition from unions who fear job losses. |
| The French government currently owns 80% of GDF, and was keen to prevent Suez from merging with the Italian energy company Enel. | |
| Terms | Terms |
| The "merger of equals" deal - means that 21 Gaz de France shares will be exchanged for 22 Suez shares, the firms said in a joint statement. | The "merger of equals" deal - means that 21 Gaz de France shares will be exchanged for 22 Suez shares, the firms said in a joint statement. |
| Suez will divest 65% of its water and waste management operations by placing shares on the stock market. | Suez will divest 65% of its water and waste management operations by placing shares on the stock market. |
| There had been fears that the talks, between Suez and the office of French President Nicolas Sarkozy, could collapse, following disagreement over the terms of the tie-up. | There had been fears that the talks, between Suez and the office of French President Nicolas Sarkozy, could collapse, following disagreement over the terms of the tie-up. |
| As Suez has expanded far faster than Gaz de France since the original plan was announced in 2006, new terms were needed to do justice to Suez investors, analysts said. | As Suez has expanded far faster than Gaz de France since the original plan was announced in 2006, new terms were needed to do justice to Suez investors, analysts said. |
| Unions have feared that not only could it lead to job losses but also that it could reduce competition and therefore push up energy prices for consumers. | Unions have feared that not only could it lead to job losses but also that it could reduce competition and therefore push up energy prices for consumers. |