GDF Suez to acquire International Power

French energy group GDF Suez is to acquire 70% of British competitor International Power it was announced this morning.

GDF Suez will pay a dividend of 92 pence per share to IP stakeholders for a total price of £1.4bn pounds (€1.68bn).

The company will be known as New International Power and will be the biggest independent power producer in the world with estimated sales of £11.2bn.

Under the deal GDF, which is 35% state-owned, will bring its non-European power generation businesses into International Power, plus assets in the UK and Turkey, in return for a majority stake in the new UK-quoted company.