Suez faces upheaval as Veolia takes control of two-thirds of its operations

In France, Suez has announced that CEO Sabrina Soussan is set to depart the company on January 31, 2025, following significant restructuring efforts after Veolia's acquisition of two-thirds of its operations in 2021. Soussan, who was appointed director general in January 2022 and became CEO in July 2022, faced mounting tensions with the board of directors, which became evident in recent months. Despite no official reasons provided for her departure, the announcement aligns with longstanding rumors regarding disagreements with the board concerning her management style and strategic decisions. The utility company has undergone a notable transformation under Soussan's leadership, which she claims has resulted in a successful 'first cycle' for Suez. Financially, the company's position remains robust, with sales reportedly reaching €8.9 billion, showing a marked increase of 30%, and EBITDA growing by 25% to €1.4 billion in the first half of the year. This expansion is juxtaposed against the rising debt of €5.3 billion that the company attributes to its growth strategy. As the organization prepares for Soussan's exit, Suez's governance structure is already shifting. Thierry Déau, founder of the infrastructure fund Meridiam and a principal shareholder of Suez with a 40% stake, will take over the chairmanship of the board starting January 1, 2025. Déau has dismissed any intent regarding the acquisition of the remaining 10% stake held by the Caisse des Dépôts et Consignations (CDC), refuting rumors of Meridiam becoming the majority shareholder. In light of these changes, Suez faces a complex situation wherein its leadership transition coincides with ongoing industry challenges post-2021 acquisition, requiring the new CEO to navigate intricate internal and external dynamics. While Sabrina Soussan's departure certainly marks a pivotal shift for the utility giant, the organizational focus will need to remain on leveraging its established projects and maintaining financial health amid competitive pressures in the water and waste management sectors globally.