Suez was a French multinational company that merged with Gaz de France in 2008 to create GDF Suez, with its waste treatment and water components forming Suez Environnement. The merger was controversial due to the state’s previous majority stake in Gaz de France. Suez has faced criticism for water privatization disasters, but maintains that it has kept its contracts and improved accessibility and water quality.
Suez was a French-based multinational company that managed water, waste management, energy and, for a short time, telecommunications projects around the world. In 2008, it merged with French company Gaz de France to create GDF Suez, a utility company. The former company’s waste treatment and water components were transformed into a new multinational corporation called Suez Environnement.
Corporate History
The long and complex history of this company began in Holland in 1822 and included mergers and spin-offs with several companies. The name Suez came from its participation in the construction of the Suez Canal in the mid-nineteenth century. After joining the company in 1984 as Vice President, Gérard Mestrallet went on to become its President and CEO in 2001. He held this role when the merger with Gaz de France took place and later became CEO of Suez Environnement.
controversial merger
There was considerable controversy in France over the merger of these two companies, because the state previously held a majority stake in Gaz de France. When the plan was first announced in February 2006, French Prime Minister Dominique de Villepin and President Nicolas Sarkozy were at odds with the merger, with Villepin supporting it and Sarkozy promoting a deal that would allow France to retain its stake. controller. When Villepin and Sarkozy reached an agreement to let the deal go ahead, leftist opposition across the country continued to raise objections to the privatization of Gaz de France because of a fear of rising prices. The plans went ahead despite criticism, however, and French law and Gaz de France’s actions were restructured to allow the deal to take place. On July 22, 2008, the two companies officially merged to form GDF Suez, which became the second largest utility company in the world.
The former company’s water and waste divisions became Suez Environnement, in which GDF Suez owns a substantial stake. These divisions began with the Society Lyonnaise des Eaux e l’Eclairage, which managed the water supply in Cannes, France, starting in the 1880s. Operations evolved to include the collection, treatment and distribution of potable water; industrial water purification; and collection, treatment, recycling, energy recovery, incineration and landfilling of waste. Suez Environnement has several subsidiaries including United Water, Ondeo, Degrémont, Sita and Safege.
Responding to Critics
As one of the largest water companies in the world, Suez has been criticized by critics of water privatization around the world. The company has suffered multiple public relations injuries from water privatization disasters, most notably a corruption scandal in Grenoble, France; the loss of his contract with Atlanta, Georgia, in the United States; and contract renegotiations in the Philippines. Anti-privatization activists and non-governmental organizations such as Food and Water Watch alleged that the company exploited the poor, overcharged its customers and failed to meet some of its contractual obligations. Suez maintains that it has kept its contracts, improved accessibility and water quality in its contracted areas, and has had much more success than water contract failures.
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