French utility giant Suez and the 80- percent state-owned utility Gaz de France (GDF) worked out on Sunday the details of a merger to create a European leader in energy and environment, local media reported.

French Prime Minister Dominique de Villepin announced Saturday the 70-billion-euro (83-billion-dollar) merger after a dramatic week of takeover talk in Europe's utilities sector.

"With this merger, we have the ambition to create one of the top energy groups in the world, in particular in the gas sector," Villepin said, adding that the move was motivated by "the strategic importance of energy for France."

French Finance Minister Thierry Breton said the state would wind up with at least a 34 percent share in the new group, enough to hold sway over the company's decision-making.

The merger between GDF and Suez would rival in size Europe's biggest utility, Electricite de France (EDF).

Source: Xinhua