SUEZ SA, the French power provider merging with Gaz de France SA, has entered exclusive talks to sell its majority stake in Belgian gas distributor Distrigaz SA to Eni SpA after the Italian company offered the highest price.

Eni will complete its examination of Distrigaz's accounts this week and "should sign" a final agreement on Thursday, according to Bloomberg News.

Suez and Gaz de France, both based in Paris, agreed to sell Suez's 57 percent stake in Distrigaz to gain approval for their merger. Brussels-based Distrigaz, which has a market value of 4.4 billion euros (US$7 billion), has contracts for liquefied natural gas and supplies of fuel from the Netherlands, Norway and Qatar.

"This will make Eni a little stronger in Europe, and it weakens Suez's energy business in Belgium," said Andre Chassagnol, an analyst at Paris-based brokerage HPC Paresco. The offer from Rome-based Eni beat out bids from E.ON AG and Electricite de France SA, Suez said. The purchase would give Eni, Italy's largest oil company, more access to fuel and customers in northern Europe.

Distrigaz shares rose 89.99 euros, or 1.5 percent, to 6,289 euros on Friday. Eni shed 53 cents, or 2 percent, to 26.40 euros in Milan, giving it a market value of 106 billion euros. The sale is conditional on the merger of Suez and Gaz de France, the pre-emption right of Publigas not being exercised and European Commission approval, Suez said.