France's Suez to Buy Spanish Gas Natural

French utility Suez plans to take an 11.3 percent stake in Spain's Gas Natural, in what it called a "friendly and constructive" move.

Suez said in a statement it had already increased its stake in Gas Natural to 9.95 percent and had agreed to buy an additional 1.35 percent of its share capital as long as it got approval from Spain's energy market regulator to do so.

Suez had previously held 5.4 percent of Gas Natural and a source familiar with the situation told Reuters the additional 5.9 percent stake in Gas Natural would cost it 1 billion euros ($1.35 billion).

Shares in Suez, which said the purchase was compatible with its proposed merger with Gaz de France, were up 0.05 percent at 42.44 euros.

Suez said it had informed Spanish market regulator CNMV that it had completed the acquisition of 4.55 percent of Gas Natural's share capital this year.