OREANDA-NEWS. GDF SUEZ and Mitsui & Co., Ltd. (“Mitsui”) have agreed to strengthen their existing partnership in Australia. As part of the agreement, Mitsui will acquire a 28 per cent equity interest in five assets from GDF SUEZ Australian Energy, a wholly owned subsidiary of GDF SUEZ.

GDF SUEZ Australian Energy owns and operates 3,540 MW of renewable, gas fired and brown coal-fired generating units in Victoria, South Australia and Western Australia.

GDF SUEZ and Mitsui already have a strong, long-term partnership following a successful track record of joint investment and cooperation for projects in Canada, Europe, the Middle East, Africa, Asia as well as an existing partnership agreement in Australia, where Mitsui has owned 30 per cent of the Loy Yang B power station and 21 per cent of Kwinana power station since 2004. This transaction will extend the existing partnership with Mitsui to the entire Australian portfolio.

The transaction, which comprises four, principally merchant, assets with a total capacity of 2,463 MW and the Simply Energy retail business, will create a common ownership platform across the Australian generation asset portfolio.

This new partnership, which is in line with the Group's transformation strategy, will contribute to the Group's 2013-14 portfolio optimisation program and will lead to a reduction in the Group's net debt upon completion of the transaction, which is expected this month.

The assets involved in the transaction are:

Canunda, a 46 MW wind farm in South Australia

Hazelwood, a 1,542 MW coal-fired power station in Victoria

Pelican Point, a 479 MW gas-fired power station in South Australia

Synergen, comprising 396 MW gas-fired peaking plants in South Australia

Simply Energy, a retail business in Victoria/South Australia with some 350,000 electricity and gas accounts