The chief executive of French utilities group Suez defended a proposed merger with state-owned Gaz de France (GDF), saying it would be "the crowning achievement of Suez."

In an interview with the French financial newspaper La Tribune published on Thursday, Suez President Gerard Mestrallet said a tie-up between the two French companies would create competition in the French market.

But he added "the government held the key," because the deal contradicts a 2004 law under which the government must hold at least 70 percent of GDF shares.

The merger plan technically involves the privatization of GDF, which is currently 80-percent owned by the French state.

In the interview, Mestrallet also lashed out at a takeover bid by Italian group Enel, the third largest energy supplier in the world, which has expressed interest in buying Suez's Belgian power unit Electrabel.

According to Mestrallet, the takeover by Enel would lead to the dismantling of the Suez group.

"Enel is only interested in Electrabel, that is, 20,000 employees out of the 160,000 in the whole group," Mestrallet said.

"This is a bid at breaking up the company. What would happen to the 140,000 employees in other sectors that are sold off?"

Mestrallet and GDF's CEO Jean-Francois Cirelli are to press their case on Monday in Brussels for the proposed tie-up. They will meet European Competition Commissioner Neelie Kroes.

Source: Xinhua