Tuesday, September 4, 2007

What's going on in European energy sector?

In France, Suez and GDF (Gaz de France) announced merge and going to be third largest European utility company after Electricite de France and E.ON.Even thought fusion is always considered as a positive for industry but it is not that case now due to political interventions. First talks about the merge in question started in 2005 after Italian Enel expressed interest in Suez. French company owned by Italian? 80% state owned GDF acted with the offer.European Commission attempts for competitive environment look like not fulfilled.

Comments

1 Response to "What's going on in European energy sector?"

Sergei said... September 4, 2007 at 11:57 PM

This merger is about petro-nationalism first and business second. Western European states and energy companies (especially state-owned energy companies) have been trying to get out from under the dominance of Russian energy companies. This is why the French gov. intervened. Given this intervention, and the fact that so many of the executives have connections with each other in both the private and public sector check out this IntellectSpace map, it's pretty interesting http://www.newsvisual.com/newsvisual/2007/09/merger-talks-be.html, it is not surprising that this merger took place.