Gaz de France And Suez Set To Merge to Become Europe's Largest Gas Buyer

Paris, France (AHN) - After a two-year wait, French utility giant Gaz de France and energy company Suez SA can merge to become Europe's largest gas buyer and importer, the companies announced Monday.

France's financial regulator, the Financial Markets Authority (AMF) recently approved the merger of the two companies, which would form the country's largest energy group.

In separate meetings in Paris last week, the boards of the two companies set a July 16 deadline to finalize the merger and already called for a joint board meeting on July 22.

According to Suez, the merger terms stipulated the distribution of 65 percent of the capital of Suez Environnement, a Suez SA subsidiary and the subsequent exchange ratio of 22 Suez shares for every 21 GDF shares.

Suez is also slated to sell a large portion of its shares in its Belgian unit Distrigas to Italy's Eni SpA for $4.2 billion in cash.

Gaz De France officials say the merger could lead to a stock market listing by July.