UK-based International Power and French utility GDF Suez have signed a merger deed and other principal agreements including the relationship agreement and the financing agreement in connection with the proposed combination of their assets around the globe.
The terms and conditions of these agreements are in line with the memorandum of understanding signed between the companies on 10 August 2010.
As per the agreements, GDF Suez will infuse its assets outside of continental Europe into International Power in order to create an enlarged International Power (New International Power).
Following completion of the combination, International Power shareholders will own 30% of New International Power and GDF Suez will own the remaining interest.
Completion of the asset combination is expeceted by the end of this year or early 2011.