The companies also said that new projects are expected to deliver another 22,000MW of generating capacity by 2013.
GDF Suez will own a 70% stake in the new company, while International Power’s existing shareholders will hold the remaining interest.
Last August, GDF Suez signed a deal to infuse its Energy International Business Areas (outside Europe) and certain assets in the UK and Turkey into International Power.
The European Commission gave an anti-trust clearance for this combination of assets last week.
International Power chairman Neville Simms said that the completion of this transaction creates a high growth, world-leading independent power generation company.
"The enlarged group has a strong pipeline of committed new-build projects already in the course of construction, and enhanced access to further significant growth opportunities through its broader global presence," Simms said.
