What is Suez?
Suez was a multinational corporation, or MNC, based in France that ran water, waste management, electricity, natural gas, and, for a short time, telecommunications projects across the world. In 2008, Suez merged with the powerful French company Gaz de France to create GDF Suez, a utility company. The waste treatment and water components of the former Suez were rolled into a new multinational corporation called Suez Environnement.
Suez had a long and complex history with roots tracing back to the Netherlands in 1822 and including mergers and breaks with several companies. The name Suez came from its participation with the building of the Suez Canal in the middle 1800s. After joining the company in 1984 as Vice President, Gérard Mestrallet climbed up in the company to become chairman and chief executive officer (CEO) in 2001. He held this position when the merger with Gaz de France took place and then transferred to become CEO of Suez Environnement.
The merger caused considerable controversy in France, since the state previously had a governing share of ownership of Gaz de France. When the plan was first announced in February of 2006, French Prime Minister Villepin and President Sarkozy were at odds over the merger, with Villepin supporting the two-way merger and Sarkozy promoting a deal that would allow the French state to maintain its controlling share.
As the two reached an agreement to let the deal go ahead, leftist opposition throughout the country continued to raise objections over the privatization of Gaz de France, fearing price hikes. Plans went on in spite of the criticism, however, and French laws and Gaz de France shares were restructured to allow the deal to take place. On 22 July 2008 Suez and Gaz de France officially merged to form GDF Suez, the second largest utility company in the world.
The water and waste divisions of the former Suez became their own company, Suez Environnement, of which GDF Suez owns a substantial share. These divisions had their beginnings with La Société Lyonnaise des Eaux et de l'Eclairage, which managed the water supply in Cannes, France beginning in 1880. Operations have evolved to include catchment, treatment, and distribution of drinking water, purification of industrial water, and the collection, treatment, recycling, energy recovery, incineration, and landfill depositing of waste. Suez Environnement has several subsidiaries, including United Water, Ondeo, Degrémont, Sita, and Safege.
As one of the largest water companies in the world, Suez has come under fire from critics of water privatization worldwide. The company has suffered several public relations injuries due to water privatization debacles, notably a corruption scandal in Grenoble, the loss of its contract with Atlanta, Georgia, and contract re-negotiations in the Philippines. Anti-privatization activists and non-governmental organizations (NGOs) such as Food and Water Watch claim Suez has exploited the poor, over-billed its consumers, and not delivered on its contractual obligations. Suez maintains that it has upheld its contracts, improved water accessibility and quality in its contracted areas, and has had far more success than failure with its water contracts.
Written by Caitlin Kenney
