Suez
Contents
Introduction
History
"SUEZ is the result of a merger between Compagnie de SUEZ and Lyonnaise des Eaux, which took place in June 1997. At the time, Compagnie de SUEZ, which had built and operated the SUEZ Canal until it was nationalized by the Egyptian government in 1956, was still a holding company with diversified equity investments in Belgium and France, mainly in the financial services and energy sectors. Lyonnaise des Eaux was a diversified company involved in water and waste management and treatment as well as construction, communications and the management of technical facilities" [1]
Mergers, acquisitions and businesses
In July 2008 the energy division of Suez merged with French state energy company Gaz de France, creating GDF Suez. In one fell swop the merger created 'the world's fourth largest energy utility by market capitalization, behind Russia's Gazprom, France's EDF and Germany's E.ON'. 'The combined revenues of Suez and Gaz de France were about $117 billion, with earnings of almost $8.85 billion' [2]. Suez Environment, the water and waste division is 35% part owned by GDF Suez, as such there is quite an overlap on the board of Suez Environment from that of GDF Suez.
Suez has acquired various businesses, created a plethora of subsidiaries and ignited partnerships - often of the Public Private (PPP) kind - right across the world. Similar to its apparent rival Veolia - there are accusations that Veolia and Suez work in tandem as a cartel to secure public contracts - Suez has deployed an expansive strategy, which like Veolia led to financial turbulence for them in the early parts of the 21st century. Like Veolia they expanded into countries that proved problematic, again just like Veolia they have sought various forms of corporate welfare, in the form of loans (soft), grants and subsidies from International Financial Institutions and donor governments to ofset this risk. In addition, like Veolia they have sought safer and less risky new markets. Especially affarmage contracts where they sell their expertise and skills to public authorities and companies, but are not expected to invest. Thats left to the customers and local governments.
