French energy giant GDF Suez (Euronext: GSZ) is to pay $10bn for the 30% share of UK-based International Power that it does not already own.

GDF’s bid will be funded from bank facilities and cash. International Power shareholders would receive cash as well as a final dividend from 2011, GDF said in a statement.

International Power has a total generation capacity of 70 000 MW across 30 countries and operates in sectors including coal, renewables, electricity retail and liquefied natural gas.

Neville Simms, International Power chairman, said: “GDF Suez has made an attractive proposal and the independent IPR directors have concluded that it represents a price that fairly reflects the company’s position in international power generation markets and its inherent growth potential. Accordingly, the directors will be unanimously recommending that shareholders vote in favour of the scheme.”

Gérard Mestrallet, chairman and GDF Suez said that the acquisition formed a key part of GDF’s strategy to become “the leading energy player in the emerging countries”.

For more power business news