Citing the "strategic importance of energy" for France, Villepin announced on Saturday (25 February), that a merger between Suez and Gaz de France was "the most appropriate way" to counter Enel's expected bid on Suez.
Villepin said the merger has the ambition to create one of the world's largest energy groups, particularly in the gas sector where it will lead the market for Liquefied Natural Gas (LNG).
The merger will also require the partial privatisation of GDF since the state will need to relinquish part of the 80.2% stake it currently holds in the company. According to a 2004 law, the French government is required to hold at least 70% of GDF's capital. Economic minister Thierry Breton pledged on Saturday that the state's participation in the company will not fall below the 34% stake needed to hold a minority blockade.
"We want real control over the group's strategic decisions," said an aide to Villepin cited in French daily Libération.
The merger has irritated the Italians with industry minister Claudio Scajola cancelling a planned visit to Paris. Economy minister Giulio Tremonti is cited in Libération for lashing out at Villepin's trademark "economic patriotism" doctrine, saying "it is still time to prevent European Union states from raising national barriers" to the EU's economic integration. "In the opposite case," he added with a sense for drama, "we risk a 1914 effect […] with, in the end, a war that nobody had called for".
