Prestige Institute of Management & Research,

Indore

CORPORATE RESTRUCTURING

GAZ DE FRANCE-SUEZ MERGER

Presented To:- Presented By:-

CA. Chandani Bhagat Aastha Verma
Arunesh Kushwah
Atul Verma
Ayushi Rajawat
Dipanshi Patidar
Bhoomika Gadekar
Key talking
points PRESENTATION
FRAMEWORK
Introduction
Important Terminology
Background of Gaz de France
Background of Suez
Reason and Method of Merger
Major Timeline
Post Merger Effects
KNOWING
THE BASICS
Mergers
Merger of Equals
Government Company
Privatization
Spin-Off Effects
GAZ DE FRANCE
Created 1946 by the French Government.
Transported and sold natural gas around the
world
Through its part-owned Belgian subsidiary SPE
it was also involved in nuclear power
generation.
The company's capital was partially floated on
the Paris Stock Exchange in July 2005, raising
€2.5 billion for the State of France.
The government continued to hold an
approximate 80% stake in the company until
the 2008 merger with Suez.
The French state now holds approximately
35.7% of GDF Suez(New Entity Post Merger)
SUEZ
Suez S.A., known from 1997 to 2001 as Suez-Lyonnaise
des eaux, was a leading French multinational corporation.
Service Sector Company
Operations primarily in water, electricity and natural gas
supply, and waste management.
Suez was the result of a 1997 merger between the
Compagnie de Suez and Lyonnaise des Eaux [fr]
Faced with growing environmental challenges, for more
than 160 years, SUEZ has been acting to deliver essential
services that protect and improve the quality of life.
 THE MERGER

Gaz de France-Suez merger

2006
Feb 21: Italy's biggest utility Enel ENEI.MI says it may
launch a bid for Suez.
Feb 25: Prime Minister Dominique de Villepin announces
plans for a merger between GDF and Suez.
June 19: The European Commission opens a probe
June 28: The government approves the privatization bill.
Oct 13: Suez agrees to sell its majority stake in Belgium’s
Distrigas, and GDF its 25.5 percent interest in Belgian power
producer SPE.
 THE MERGER

Gaz de France-Suez merger

2007
Aug 28: GDF appeals to Suez to “take the necessary steps”
to make the merger happen amid reports the government
wants Suez to divest some or all of its water and waste
business.
Sept 3: GDF and Suez agree on new terms -- 21 GDF shares
for 22 Suez shares and the partial spin-off of Suez’s water
arm
2008
July 22: GDF Suez merger set to become effective.
 THE POST
MERGER
EFFECTS
Creation of a global leader specialized in energy
A value-creating transaction for all stakeholders
Initial public offering of SUEZ’s Environment
activities, a world leader in water and waste
management
A structure focused on efficiency and geared
towards action