The French energy giant GDF Suez is set to acquire the last 30% of the electricity producer International Power for £6.8bn.
A revised bid of £6.8bn from GDF Suez for the remaining 30% of International Power it doesn’t already own has been approved by directors.
Utility Exchange reported last year that the electricity generator, International Power, had merged with GDF Suez making it the second biggest independent power producer in the world.
An initial offer was rejected by International Power but an increase of 7% on that bid was approved by International Power directors.
In a statement GDF Suez said “This transaction represents a major strategic step in GDF SUEZ’s development. It is consistent with the Group’s strategy of accelerating its development in fast growing markets and simplifying its structure”.
GDF Suez plans to increase investments in the future in developing countries. International Power already has a leading place in such countries including South America, the Middle East, South-East Asia and Australia.
Chairman and chief executive of GDF Suez, Gérard Mestrallet, said that the deal “will allow the Group to fully capture growth in fast growing markets”. He added “..we want GDF Suez to be the leading energy player in the emerging countries”.