Ghost of a chance

16 June 2008 By Pierre Briancon

The marriage of Gaz de France and the FrenchBelgian utility has taken two years and is due finally to be consummated in July. They should make a beautiful couple. But the new company is born of political compromise and the French state s weight will handicap it.

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Gaz de France, the French stateowned gas distributor, and Suez, the FrenchBelgian utility, said on 16 June that the French watchdog had greenlighted their merger, which was first announced in March 2006.

According to terms agreed last September between the two companies, Suez shareholders will receive 21 new GDF shares for each 22 Suez shares they own. The French government will have 35.6% of the new company.

The companies also said that Suez shareholders will also receive one share of Suez Environnement, the utility's water and waste management arm which is to be listed soon, for each four Suez shares they own. As previously announced, GDF Suez will keep a 35% share in its former division.

Based on current market prices, this would give Suez Environnement a market capitalisation of around E10bn.

Both Suez Environnement and GDF Suez will start listing on Euronext on July 22, the companies said.

GDF Suez press release
GDF Suez official filing
GDF Suez slides presentation
Suez Environnement press release

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Based on current market prices, this would give Suez Environnement a market capitalisation of around E10bn.

Both Suez Environnement and GDF Suez will start listing on Euronext on July 22, the companies said.

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