Italy’s Premier Silvio Berlusconi said today that the European Union should intervene in the planned French energy merger aimed at blocking a potential hostile bid from Italian energy company Enel.

Gaz de France and Suez today announced details of their hastily-arranged all-French merger, designed to create a new leading player in energy and environmental services – and fend off a bid for Suez by Italian power company Enel.

Talks begin today towards sealing a controversial merger deal between state-owned gas producer Gaz de France and utility company Suez that would create a world energy leader and block a hostile bid from Italy.

British Gas group Centrica today said it was in exclusive talks to take control of Belgium’s second-largest power supplier.