9 August 2011 (SinoCast Daily Business Beat via COMTEX) -SHANGHAI- GDF Suez, a French multinational energy company, has been in in-depth talks to sell 30 percent of exploration and production business at at most EUR 3 billion to China Investment Corporation, the country’s sovereign wealth fund.
The French company is attempting to reduce liabilities in terms of an agreement, according to sources close to the matter, pointing out that the agreement has not been clinched but is expected to be released on Wednesday at the earliest.
GDF Suez will bring a valuable finance partner and will swiftly enter fast-growing market in Asia Pacific after the agreement is inked. That will help the company’s chairman and CEO Gerard Mestrallet achieve his target, cutting debts by EUR 10 billion to EUR 4 billion to EUR 5 billion.
GDF Suez has built a considerable water service and wastewater treatment business in China, and it expects to strengthen business partnerships in the country while Chinese companies are to launch competitions on the global energy market. The French company earlier aired that it was to shift focus to Asia.