Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-GDF wins EU approval to buy International Power

Published 01/26/2011, 01:08 PM
Updated 01/26/2011, 01:11 PM

* GDF Suez agrees to sell Belgian power plant

* New company will be world's largest utility

(Adds details)

BRUSSELS, Jan 26 (Reuters) - France's GDF Suez won EU regulatory approval on Wednesday to buy International Power to form the world's largest utility after it agreed to sell the British peer's Belgian plant.

GDF Suez, Europe's second-largest utility, will own 70 percent of the new group, giving it access to fast-growing emerging markets and a foothold in Britain and Australia.

The European Commission said on Wednesday that GDF pledged to sell International Power's stake in the T-Power plant, due to start production in 2011. It would also transfer the operation and maintenance agreement of the plant to third parties.

"The commitments offered by the parties addressed the concerns identified by the Commission that the deal could have enabled GDF Suez to restrict competition and raise prices in the Belgian wholesale market," the Commission said in a statement.

"These commitments will ensure competition is maintained and consumers get the best possible result in terms of price," the EU watchdog added.

The new company is expected to have annual sales of 84 billion euros ($114.9 billion) and a market capitalisation of more than 80 billion euros, putting it ahead of German peer E.ON and France's EDF.

($1=.7309 Euro)

(Reporting by Foo Yun Chee and Luke Baker; Editing by David Hulmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.