GDF Suez Chief Executive Gerard Mestrallet attends a news conference to present the company's first-half earnings in Paris August 10, 2011. GDF Suez, the world's biggest utility, and China Investment Corp, are in exclusive talks to seal a $4 billion alliance that will help the French utility fund its expansion in Asia and offer Beijing access to new energy resources.[Photo/Agencies]

PARIS-- GDF Suez, a French energy group and environmental service supplier, and China Investment Corporation (CIC) have signed a Memorandum of Understanding (MOU) for cooperation across multiple businesses and regions, in particular in Asia Pacific, according to a joint statement issued on Wednesday.

The MOU will help GDF Suez access to joint investment opportunities in existing and new energy-related projects in Asia Pacific, financing cooperation and CIC's commercial sponsorship and support in the region, including China.

As the first step, CIC is in advanced exclusive talks with GDF Suez regarding a 2.3 billion euros ($3.26 billion) minority investment in the Exploration & Production division of GDF Suez, or 30 percent of the share of GDF Suez E&P following a capital increase and a financial restructuring.

"The minority investment of CIC will reinforce GDF Suez E&P's capital structure and will contribute to accelerate the development of this important activity for GDF SUEZ by providing the appropriate financial flexibility," the statement said.

In addition, part of the transaction needs CIC to acquire from GDF Suez a 10-percent stake of the Atlantic LNG liquefaction plant located in Trinidad and Tobago for an amount of 600 million euros ($851 million), according to the statement.

The MOU will be administered through a Steering Committee chaired by the two groups' respective CEOs and the transaction was expected to be finalized by the end of 2011.

The cooperation agreement with CIC would help GDF Suez "access substantial incremental financing resources and strong networks in China and throughout Asia," said Gerard Mestrallet, Chairman and Chief Executive Officer of GDF Suez describing CIC's investment as "a highly attractive first milestone" for the group.

For the first half of this year, the French group recorded a robust revenue at 45.7 billion euros, up by 7.9 percent compared from the results a year earlier. Its net income stood at 2.7 billion euros, but net debt at 40.7 billion euros.

According to GDF's first half results, if taking into account the transaction with CIC, the French group's debt would shrink to 35.4 billion euros.

Lou Jiwei, Chairman and Chief Executive Officer of CIC labelled the investment to 30 percent shares of GDF Suez E&P as the Chinese investor's "first sizeable transaction in Europe to date."

Founded on September 29, 2007, the Beijing-based CIC is a wholly state-owned investment institution that makes long-term investments for the risk-adjusted financial returns under the Company Law of the People's Republic of China.