The changes are set to be in place as early as the start of next year and will divide its operations into 24 distinct business units in order to drive growth.
The division of operations will take a region-centred approach, with one business unit each for North America, Latin America, Brazil, Africa, China, Asia-Pacific, Southern Asia and Middle East, Benelux, Northern, Central & Southern Europe and the UK.
In addition, eight entities will exist within France.
Operating on a global level there will be distinct business units steering operations in thermal generation business, exploration and production, LNG, energy management trading, Tractebel Engineering; and Gaz Transport & Technigaz.
The company said that the reorganisation has three objectives: “accelerating the group’s growth, making GDF Suez more than ever a group by and for people, making this enterprise project one of which our employees will be the architects and the ambassadors”.
“This plan, by rooting GDF Suez more firmly in its local areas and thus ever closer to its clients, will create an even more efficient group, one that is more entrepreneurial and innovative and, at the same time, more responsive,” the company added.
Investor reaction was cautiously positive following the news but RBC Capital warned that even though it is broadly supportive of a move to simplify and decentralise, it is not immediately clear how the proposal will make GDF a leaner organisation.
There is also no mention of the expected financial benefits or the cost to implement, an RBC Capital investor note said.
“For now the jury remains out until a deep explanation is forthcoming,” the analysts added.