GDF Suez creates Chilean giant in merger

PARIS, Nov. 10 (UPI) -- France-based GDF Suez announced the merger of its electric and gas transport assets in Chile with copper producer Codelco, creating a regional giant.

Several regional gas and electric companies as well as thermal power stations will merge into Edelnor, a subsidiary of Codelco.

Edelnor becomes the north Chilean leader in the generation of electricity following the completion of the merger. It will boast 1,795 MW of installed capacity in the north Chilean electricity grid, or SING. The thermal power stations included in the merger could bring that total to 2,125 MW, GDF Suez reported.

Dirk Beeuwsaert, the executive vice president of international projects for GDF Suez, said the merger will help "simplify the ownership structure of the various energy companies of which GDF Suez and Codelco are partners today in the SING."

GDF Suez takes a 52.4 percent stake in Edelnor with Codelco holding a 40 percent share. The remaining 7.6 percent will be traded in stocks.

The French energy giant said it expects completion of the merger during the first half of 2010.