A power struggle has broken out between Gaz de France (1020848.FR) and Suez's (SZE.FR) European work councils, which are crucial to breaking the impasse which has delayed the EUR75 billion merger of the two companies, The Financial Times reports Thursday, without citing sources.
GdF's European unions are demanding they represent the enlarged group when the merger is complete before they will give their non-binding opinion, which is required under French law before the companies' boards can approve the deal, the newspaper said.
Suez is resisting the demand and both sides are seeking agreement ahead of the next works council meeting March 11, The Financial Times reports.
GdF's CEO, Jean-Francois Cirelli said he remained "reasonably confident" the June 30 deadline for closing the deal could be met and that the European unions would give their opinion in March.