PARIS, July 16: A global energy giant emerged on Wednesday after shareholders in French groups GDF and Suez approved a tie-up despite domestic political opposition and misgivings by EU officials.

Shareholders in both companies, in separate general assemblies, endorsed the merger, with the official launch of the giant utility set for July 22, capping a tortuous procedure that began in February 2006.

In the marriage of Gaz de France, a public enterprise, and privately held Suez, which has energy, water and waste treatment operations, the French government hopes to establish a national energy champion, capable of winning business in the European and international arena.

Suez chairman Gerard Mestrallet described the deal to create GDF Suez as “one of the largest mergers in France in the last 20 years,” with the new group to have a stock market value of 93 billion euros ($148 billion) and employ nearly 200,000 people.

Mestrallet will head GDF Suez, with current GDF chairman Jean-Francois Cirelli to be his second-in-command.

Speaking later to the GDF general assembly, Cirelli cited a need for “strong energy companies” such as GDF Suez. “European energy security is a matter of primary importance,” he said. “There must therefore be strong energy companies ... We will have even greater need for energy, even if we do have to conserve.”

The deal amounts to the privatisation of GDF and it triggered strong objections from the French left and consternation on the part of unions. It also means that the state enters Suez as the biggest shareholder.—AFP