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Image header Agence Europe
Europe Daily Bulletin No. 9212
Contents Publication in full By article 16 / 33
GENERAL NEWS / (eu) eu/competition

Probe into Suez-GDF?

Brussels, 15/06/2006 (Agence Europe) - The European Commission is preparing to open a full-scale investigation in four months' time into the merger between Suez and Gaz de France (GDF), according to Reuters. The subject of fierce criticism, especially in Europe, where many countries are accusing France of protectionism (the Italian company Enel had previously expressed an interest in Suez), the deal has also provoked a polemic in France where many unions and UMP MPs have called for prime minister de Villepin to not privatise GDF, which is indispensable if the merger with Suez is to go forward. Belgium has said that it is afraid of a negative impact from this merger on competition in its national market. Suez owns Electrabel, the largest Belgian electricity producer, as well as Ditrigas, the largest gas producer in the country, Elia, the high tension electricity network and Fluxys gas pipe network. GDF controls 25% of SPE, the second largest electricity producer in Belgium. The European Commission is expected to give its verdict next week. In the meantime, a spokesperson indicated on Thursday that it had no comments to make, the investigation was continuing and not decision had yet been made.

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