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GDF Suez and International Power renew merger talks

Merger of French utility and the British energy group would result in a combined £50bn company.

Energy giants GDF Suez and International Power on Monday announced a renewal of talks over a possible merger, after a first round of discussions failed in January.

The discussions center on the creation of a London-listed International Energy group, with GDF Suez retaining a majority stake.

France-based GDF Suez is the world's second-largest utility company with a market value of £46bn, while International Power is one of the world's largest independent power station operators, with a market value of £4.8bn.

International, which owns six power plants in Britain, has interests in 45 power stations around the world. It became the country's 56th-largest public company, after its shares went up 9 per cent on Monday.

GDF Suez is reported to have interests in various fields, including liquefied natural gas and waste treatment. The company, whose stock in Paris was up by 1.4 per cent at €24.66 on Monday, had revenues of nearly €80bn (£67.5bn) last year.