Following is a letter sent to the Editor of the Financial Times:
Dear Sir,
Two national champions for the price of one.
In announcing yet another French national champion, this time in nuclear power, now that the energy one, EdF/Suez, is in place ("The power behind France’s new energy champions" September 3, 2007), Paul Betts has forgotten that there is one already in the works that will be created more or less at the same time as the EdF/Suez deal.
In order to get this one done, there is an agreement for Suez to IPO its environment business, a major worldwide activity, which comes out of its acquisition of the original Lyonnaise des Eaux. EdF/Suez, controlled by the French state, will retain 35% in this new company and I wouldn´t be surprised if a few other friendly French investors appear as well, giving the French state control over this one as well.
The EdF/Suez deal will have created two French national champions, one in energy and the other in the environment area, and you can bet that both of these will be well protected by daddy state, at the same time as they will be going around the world making acquisitions.
A pretty good move by Nicholas Sarkozy, if you like this sort of thing!
Onésimo Alvarez-Moro
See article:
President Nicolas Sarkozy must be pretty pleased with the way he has succeeded in finally pushing together Gaz de France and Suez to create a new French energy champion. Along with the state-controlled EDF electricity giant, France can now boast two of the world’s top five energy groups.
But this is clearly not enough for the hugely ambitious Mr Sarkozy. Hardly has the ink dried on the controversial terms of the GdF-Suez deal than it seems he is already plotting to create a third national energy champion. This time, his plan is to establish the undisputed world leader in nuclear power.
See full Article (paid subscription required).
Posts
