“It had become complicated internally and with the shareholders”: the behind the fall of Sabrina Soussan, CEO of Suez

Former general manager of Dormakaba, a Swiss group of intelligent access and security solutions, and of Siemens Mobility, Sabrina Soussan arrives within a traumatized company. Two years earlier, in August 2020, Veolia had launched a takeover bid for its historic rival and recovered its finest assets, mainly abroad.

The former Lyonnaise des Eaux then found itself cut by 10 billion euros in turnover, with its French base as its main asset. To run the new Suez, the shareholders first plan to entrust the reins to a duo composed of deputy general managers Maximilien Pellegrini and Ana Giros. But as the two managers did not get along, they decided to explore outside the company.

A graduate of the National School of Mechanics and Aerotechnics of Poitiers, Sabrina Soussan does not have time to get her bearings when the small world of water and waste sues her for illegitimacy. “She doesn’t know the professions, she has no connections with French communities and politics, she spends too much time in Switzerland,” where her daughter studies. Another complaint is his emoluments – we are talking about 3 million euros per year: a salary which would be higher than that of the general director of Veolia Estelle Brachlianoff, who graduated from Polytechnique.

Faced with attacks, Sabrina Soussan grits her teeth and tries to put on a good face. In September 2023, it presents its strategic plan and puts the turbo on innovation, the budget of which must increase by 50% by 2027. “Our customers’ expectations focus on sobriety, the circular economy, energy independence, the production of green and local energy, adaptation to climate change,” she assures.

The boss makes three large acquisitions in waste in France, the United Kingdom and South Africa. It concludes contracts worth more than 1 billion euros with the city of Manchester and most recently Toulouse. In water management, Suez signs deals in China and Taiwan. In France, the group won the cities of Auxerre and Cannes.

The group, on the other hand, did not obtain the 4.3 billion euros contract from the Ile-de-France Water Union (Sedif) held for a hundred years by Veolia. Suez had nevertheless put all its forces into the battle. When the selection procedure was marred by a computer bug in mid-2023, the firm filed an appeal with the Paris administrative court then an appeal to the Council of State. In vain.

Suez wastewater treatment plant near Dole (Jura). If the group managed to sign contracts as far as China, it did not win that of the Ile-de-France Water Union, worth 4.3 billion. Credit: Jean Pierre Amet/MaxPPP

Did the failure of Sedif seal the loss of Sabrina Soussan? One of his relatives assures the opposite. A sector expert believes that his ouster is linked to a lack of strategy: “Today, the water sector brings in less and the waste sector is linked to the economic situation. We should have moved towards other areas such as energy services. » Problem is, this specialty is today pre-empted by the giant Veolia.

Suez, present in around forty countries, has focused on external growth. Its turnover has started to rise again. In two years, the international share has jumped from 15% to 40%. And the gross operating surplus has now reached 1.4 billion euros. However, the group’s situation remains fragile. Started by three acquisitions in waste, the net result is negative, at 117.3 million. Because the amount of debt has worsened to 5.5 billion, compared to 4.6 billion in 2022.

For several months, Suez has given the impression of a boat adrift. Sabrina Soussan has cleared the air around her. Maximilien Pellegrini and Ana Giros are long gone. Just like financial director Thomas Devedjian. Between the CEO and the teams, the connection did not take place. “During an online conference, when some Suez managers were late, we heard her grumble: “Ah, that’s really French…” reports a witness. “It had become complicated internally and complicated with the shareholders”sums up a good connoisseur of the sector. Last August, the CEO separated from her lieutenant Frederick Jeske-Schoenhoven, director of strategy and public affairs. But this sacrificial gesture was not enough.

According to the media The Letterthe ouster of Sabrina Soussan could result in a change of shareholder, with Meridiam taking over the 19% of the Caisse des Dépôts and becoming, with 58% of the shares, the largest shareholder of the group.

Information denied by the infrastructure fund. One thing is certain, from 1^is January 2025, the company will be chaired by Meridiam CEO Thierry Déau. This direction will be temporary. Shareholders are looking for a new boss who could take the reins of the company in the first quarter of 2025.

Thierry Déau. The founder and boss of Meridiam will take the helm of Suez from January. Temporarily. Credit: Joêl Saget/AFP

Among the favorites are Marie-Ange Debon, president of the management board of Keolis; Thierry Mallet, CEO of Transdev; and Xavier Girre, financial director of EDF. The first two are former Suez employees, the third is one of the administrators. All three therefore know the water and waste professions. Not sure that this is enough to compete against an overpowering Veolia.