Brussels, 20/06/2006 (Agence Europe) - As expected, the European Commission has opened a detailed investigation into the planned merger between Gaz de France (GDF) and the Suez as the proposed transaction would raise significant competition concerns in Belgium and in France. GDF, currently under French state control, is the incumbent gas operator in France and is also active in a number of other countries, including Belgium. It is also a new entrant in the electricity sector in France, Belgium and the United Kingdom. Suez is active in the gas and electricity sectors, in energy services and in water and environmental services. Its geographical focus in the energy sector is Belgium, via its subsidiaries Distrigaz and Electrabel. It has also recently entered the French markets in both gas and electricity. Following its initial investigation, the Commission remains concerned about competition in Belgium, given that the transaction would merge the country's two largest gas and electricity operators, and in France, with the merger of two of the three largest gas operators (Total being the third). In addition, the transaction would allow the new entity to control most gas imports into both Belgium and France, with the consequence risk of excluding competitors. Finally, there are potential vertical problems stemming from the parties' control over essential infrastructure (e.g. transmission and transport networks, and storage facilities). In the light of these concerns, the Commission has decided to extend its investigation until 25 October to enable it to undertake an in-depth inquiry. It will also examine the impact of the merger in the other countries affected (United Kingdom, Hungary and Luxemburg) and will discuss with the parties changes that could be brought to the transaction.