International Power enters international business negotiations
UK energy firm considering partnership with GDF Suez
19 July 2010
International Power has reopened international business
negotiations with rival energy company GDF Suez.
The potential deal would result in GDF becoming a major
shareholder in the British firm, while operations outside Europe
and certain assets in the UK and Turkey would be merged to form a
new energy group.
A statement from GDF claimed there are still obstacles which
could scupper any potential deal.
"There can be no assurance that, even if reached, any such
agreement will be completed," it read.
A merger between the two firms has been mooted before but
previous negotiations collapsed as GDF refused to offer the
required amount of cash.
GDF have hired Goldman Sachs, NM Rothschild and Lazard to be
their mergers and acquisitions consultants, while Nomura is
advising International Power.
International Power has six energy plants and provides
electricity to four million households in the UK, while GDF is the
fifth-largest energy producer in Europe.