Suez-GDF merger hits new delays

The merger has already been postponed several times

The merger of French utilities firm Suez with state run Gaz de France (GDF) has been given the go-ahead - but only after a court-ordered delay.

France's constitutional court has approved a bill privatising GDF, but says that 1 July 2007 is the earliest it can go ahead.

Opposition parties have criticised the 80bn euro (£53.7bn; $105.6bn) deal, saying it would push up energy prices.

But the government says the merger will make GDF stronger across Europe.

'European leader'

A merged company would make GDF less likely to be the subject of a takeover and ensure greater security of supply for France, the government argues.

But unions fear it could lead to job losses, echoing opposition fears that lack of competition would raise energy prices.

The privatisation of GDF means the French government will still have a significant stake in the firm - 34% - but considerably less that its existing 80% share.

"This decision allows Gaz de France to go forward with its merger plan with Suez, that will create a European energy leader," said a GDF spokesperson.

But the earliest date for the merger now comes after presidential elections, which could impact the deal.

"This puts the future of the GDF in the hands of the French people," said Jean-Marc Ayrault, floor leader of the opposition Socialist party.