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ENGIE

M&A Activity Nov 5, 2009

1286_iss_2009-11-05_f0556605-7c85-4fa5-9557-a7a570a123d9.pdf

M&A Activity

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5 november 2009

Capacity exchange agreement between E.ON and GDF SUEZ fully finalised

On 4 November, GDF SUEZ and E.ON finalised the production capacity exchange deal agreed in July, after the relevant competition authorities issued the necessary authorisations.

As from today, the GDF SUEZ Group acquires conventional power stations from E.ON with a total capacity of 860 MW, as well as approximately 132 MW of hydroelectric capacity. GDF SUEZ also acquires around 700 MW of offtake rights from nuclear power stations in Germany.

In return, E.ON acquires from GDF SUEZ the coal- and biomass-fired power station at Langerlo (556 MW) and the Vilvoorde gas-fired power station (385 MW), as well as the right to offtake approximately 770 MW from nuclear power stations, with supply points in Belgium and the Netherlands.

The now finalised exchange will encourage competition on the integrated electricity markets of North-West Europe. By this transaction, Electrabel reduced her generation shares in Belgium from 83% to 65% in about one year. For E.ON the swap with GDF SUEZ forms part of the measures pledged by E.ON to the EU-Commission in 2008 to promote competition on the German energy market. In all, E.ON made a commitment to sell about 5,000 MW of generation capacity and its ultrahigh-voltage transmission network in Germany

Overview:

GDF SUEZ acquires:

  • Farge coal-fired power station (350 MW)
  • Zolling coal-fired power station (449 MW)
  • gas turbines at Zolling (50 MW)
  • a 50% stake in the biomass generation unit (20 MW) at Zolling
  • the Jansen power station group:
  • Reisach pump storage hydro plant (99 MW)
  • Trausnitz hydro-electric plant (1.8 MW)
  • Tanzmühle power plant comprising a pump storage unit (28 MW) and a hydro electric unit (3.3 MW)
  • nuclear power offtake rights from the Krümmel, Gundremmingen and Unterweser power stations (700 MW).

E.ON acquires:

  • Langerlo coal-fired power station (556 MW)
  • Vilvoorde natural-gas-fired power station (385 MW)
  • nuclear power offtake rights from the Doel 1, Doel 2 and Tihange 1 power stations (770 MW), supplied to Belgium and the Netherlands.

This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.

About E.ON

E.ON is one of the world's leading power and gas companies. With annual sales of more than EUR86 billion and over 93,000 employees, it is already one of the world's largest investor-owned power and gas companies. E.ON is active along the entire value chain in power and gas, with operations upstream (power generation and natural gas production), midstream (energy imports and wholesale), and downstream (end customer supply). E.ON today has a significant presence on more than 30 energy markets worldwide. In addition to its activities in Europe and Russia, E.ON operates an electric and gas utility business and renewable-source generating assets in North America. Until 2011 E.ON is investing €8 billion in renewable generation and climate protection projects and will play a leading role in the development of the renewables industry worldwide.

About GDF SUEZ

One of the leading energy providers in the world, GDF SUEZ is active across the entire energy value chain, in electricity and natural gas, upstream to downstream. It develops its businesses (energy, energy services and environment) around a responsible-growth model to take up the great challenges: responding to energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. GDF SUEZ relies on diversified supply sources as well as flexible and high-performance power generation in order to provide innovative energy solutions to individuals, cities and businesses. The Group employs 200,000 people worldwide and achieved revenues of €83.1 billion in 2008. GDF SUEZ is listed on the Brussels, Luxembourg and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and ASPI Eurozone.

Contacts GDF SUEZ :

Press Contact :

Tél France : +33 (0)1 57 04 24 35 Tél Belgique : +32 2 510 76 70 E-Mail : [email protected]

Investor Relations:

Tél : +33 (0)1 57 04 66 29 E-Mail : [email protected]

Contacts EON :

Dr. Jens Schreiber T. +49-2 11-45 79-5 44 E-Mail: [email protected]

Dr. Mirko Kahre T. +49-2 11-45 79-41 70 E-Mail: [email protected]

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