China Investment Corporation (CIC) is reported to be in exclusive talks with French multinational energy company GDF Suez, in a bid to buy the company’s upstream arm for up to €3bn ($4.2bn).
After taking control of Britain’s International Power, GDF is currently the world’s largest utility, and was created following the merger of Gaz de France and Suez in 2008. It operates in electricity generation and distribution, natural gas and renewable energy sectors.
According to news reports, the acquisition of International Power increased the company’s debt, which it is trying to reduce through the sale of a 30 per cent stake in its production and exploration arm to CIC, China’s sovereign wealth fund.
The company is listed in on the Euronext exchanges in Paris and Brussels and has 236,000 employees worldwide, boasting revenues of €84.5bn in 2010.
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