European Indexes Lower, GDF Suez Sells 60% Stake in Canadian Portfolio

Arthi Gupta
17 Dec, 2012
New York City

The European indexes edged lower on disappointing economic data. GDF Suez agreed to sell 60% equity interest in its Canadian renewable generation portfolio for

[R]2:30 PM Frankfurt – The European indexes edged lower on disappointing economic data. GDF Suez agreed to sell 60% equity interest in its Canadian renewable generation portfolio for €1.5 billion.[/R]

The European indexes traded lower after euro zone exports declined but resulted in a trade surplus in October.

The European Council agreed on a roadmap for the completion of the Economic and Monetary Union, as well as the adoption of the Single Supervisory Mechanism and of the new rules on recovery and resolution and on deposit guarantees.

Across the Atlantic, the U.S. budget negotiations impasse overshadowed pre-market trading.

Japan''s Liberal Democratic Party led by Shinzo Abe won the parliamentary elections and returned to power after three years. The landslide victory gives the party more leeway to implement reforms for economic growth but weak economy and high government deficits limits the ability to make large changes.

In Paris trading, the CAC-40 Index declined 17.99 or 0.5% to 3,625.29 and in Frankfurt the DAX Index edged lower 9.52 or 0.1 % to 7,586.46.

The yields on Spain’s benchmark were at 5.432%. Italian 10-year yields fell three basis points to 4.58%.

Euro zone''s merchandise trade showed a surplus of €10.2 billion in October compared with a €0.7 billion deficit in October 2011, according to a report published by Eurostat today.

In October, seasonally adjusted exports on a monthly basis fell 1.4% while imports increased 0.6%.

GDF Suez Sells Stake in Canadian Portfolio

GDF Suez SA, the French utility agreed to sell 60% equity interest in its 680MW Canadian renewable generation portfolio, with an enterprise value in excess of C$2 billion or €1.5 billion, to Mitsui & Co. Ltd. and a consortium led by Fiera Axium Infrastructure Inc. who each hold a 30% interest in the new joint venture.

GDF SUEZ will remain the principal shareholder with 40% interest, and will continue to operate and maintain these assets. GDF Suez said the transaction will reduce its net debt by about €1 billion.