Merger And Acquisition GDF SUEZ

In this short summary, we have decided to present in a first step our motivation in choosing this subject, the sources used and our approach to work. And finally, we’ve realized a quick summary of the merger and a presentation of our analysis on the outcome of the merger and its consequences on the market.

First, to choose our subject and to make our presentation of Merger and Restructuring, we have decided to look at the economic and financial news in order to find a company to analyze.

That's why, when we came across an article talking about the echoes, that the European energy giant GDF SUEZ would be forced to lay off about 4,000 people in three years due to the current tight market conditions of the energy sectors and the increasing difficulties related to the crisis. Faced with this statement, GDF SUEZ has recently argued that its financial health remained intact and that it would not lay off staff but to hire more than 18,000 people in the next three years.

So we started to ask ourselves about the role of the group GDF Suez in the energy market and its ability to maintain its current leading position in Europe. Then, we decided to look at the merger between GDF and Suez, to find out how the merger had taken place, and what the outcome was: success, failure, profitability…

Before starting our work on the financial aspects of the merger, the terms of business and any synergies at the end of this operation, we decided to look at the situation of each company before the merger. During our researches, we were surprised to find that the two companies have known a significant growth since 2007 (the year before merger). Indeed, from a general point of view, we tend to think that one of the two companies should necessarily be required to lower performances than the other to be absorbed.

It is this that particularly aroused our curiosity. Indeed, what was the interest for these two companies that got an incredible reputation in the European and international energy sector? And most of all, we wanted to know if this merger would be necessary to each of the companies to keep good performances and important role on the markets.

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