French utility company GDF SUEZ has offered $9.5bn for the remaining 30% stake of the UK-based power generation company International Power.

GDF made a cash offer of 390 pence per share and expects that a merger would simplify the company’s group structure and improve further the integration between the businesses.

GDF stated the merger would increase its reach in emerging markets to enable future growth and increase capital access for the development of capital intensive projects in the fast-growing markets.

A full merger of International Power and GDF SUEZ would provide significant benefits to both businesses, and enable International Power to achieve its growth strategy more quickly and with greater certainty than under the existing structure, GDF said.

GDF, in which the French state has a 36% stake, acquired 70% stake in International Power for GBP1.4bn in cash in October 2010.