3 September 2007
Two French utility companies have agreed to merge to create one of the world's largest energy firms.
Suez and Gaz de France (GDF) agreed the merger this weekend in a long-awaited deal worth £61 billion; the new company will be called GDF Suez. GDF Suez will be the world's third largest power company.
As part of the new deal, which was first mooted in early 2006, the French government will hold more than 35% of the company. It currently owns 80% of GDF. It is believed that French government wanted to prevent a possible merger of Suez with Italian energy company Enel.
However French unions have raised concerns that the tie-up could lead to job losses as well as reduce competition between energy suppliers and prompt rises in energy prices for consumers.