GDF Suez to buy FirstLight Power

European power and water utility giant GDF Suez, in which Power Corp. of Canada is an important investor, said it is buying FirstLight Power Enterprises Inc., which operates hydro and natural gas electricity-generating plants in Massachusets and Connecticut.

The deal is worth an estimated $1.7 billion US. The seller is the U.S. private equity group Energy Capital Partners, which owns 15 other small power plants.