The French state firm Gaz de France (GDF) and the Suez utility group are to fuse to create one of the world's largest energy companies, French Prime Minister Dominique de Villepin announced in Paris Saturday, according to DPA. The new company will be "the largest provider of liquid gas in the world," said de Villepin in the company of both company heads. The deal is of "strategic importance" for France's energy needs, the prime minister said. The fusion counters a potential bid for Suez by the Italian power company Enel. France's parliament must change the law for the deal to go through as legally the state must own at least 70 per cent of GDF. On Monday the French government is expected to begin negotiations with the unions on the planned fusion.
