Société Générale plans to have fully integrated a new power and gas trading strategy by the end of 2010 after announcing the sale of its 49% stake in the 10-year Gaselys partnership with GDF Suez yesterday. Speaking to Energy Risk today, Yves-Marie Gayet, deputy head of commodities markets at Société Générale Corporate & Investment Banking (SG CIB), says: “We are going to continue trading in power and gas in Europe but in a fully integrated model within SG CIB. We are hoping to fully integrate all the capabilities and expertise we have developed from Gaselys by the end of the year.” According to GDF Suez, which will acquire the entire 49% stake, the decision to split the 10-year partnership was made after a review by both parties under the framework of the Gaselys shareholder pact. SG CIB's Gayet said both organisations decided to terminate the partnership in order to execute their respective strategies and develop a strong individual model in the European power and gas market in line with other business activities. SG CIB will redeploy its gas and electricity trading activities within its commodities markets division to gas, electricity, coal and oil solutions in Asia, Europe and the Americas. “Right now we are looking at expanding our teams, combining our product capability, our financing franchise, our advisory expertise and the hedging side,” says Gayet. “At this precise moment the partnership was not best route for both parties.” He added the decision to sell the Gaselys stake had nothing to do with the unit's performance and would have no impact on SG CIB's partnership with Rhodia in its Orbeo emissions trading joint venture. Gaselys will now become a wholly-owned GDF Suez subsidiary and its trading desk will be merged with Electrabel, another subsidiary of the French energy giant that focuses on the Benelux power and gas markets. The combined trading platform will retain its present dual structure, with sites in Paris and Brussels. “By 2011, this plan will lead to the creation of a European leader in natural gas and electricity trading, combining physical and financial products across a broad energy spectrum, including natural gas, electricity, oil and petroleum products, coal and carbon credits,” says a statement from GDF Suez. Gaselys was created in 2001 as the European gas and electricity markets were deregulated, with Gaz de France taking a 51% stake and Société Générale taking the remaining 49%....
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