Abstract
Two French groups dominate the worldwide water and wastewater market: Veolia Environnement and Suez Environnement. The domination by these groups, the so-called majors, stems from the specific history of the development of this sector in France, the implementation of offensive strategies of horizontal, vertical, and environmental integration, and the development of progressive internationalization. The companies became multi-service groups and form an oligopoly that structures the water market in France. However, the growing tendency of people to view water issues as an essential good and public service brings increasing demands for public control and regulation that can reduce the majors’ room to maneuver and force difficult strategic redeployments.
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Notes
- 1.
- 2.
This chapter refers to these two groups by both Lyonnaise des Eaux (or Lyonnaise) and Générale des Eaux (or Générale), or their current names, Suez Environnement, subsidiary of GDF Suez since the 2008 merger with Gaz de France, and Veolia Environnement.
- 3.
Rural and urban communities.
- 4.
Its founders had two objectives: to irrigate the countryside and supply urban water. http://www.veolia.com/fr/groupe/historique/1853-1900/
- 5.
These reforms included the Sapin Law on the prevention of corruption and the reinforcement of competition and transparency; the Barnier and Mazeaud laws on the improvement of transparency; the development of incentive mechanisms; and the involvement of users in the regulation process.
- 6.
After the nationalization of electricity industries in 1946, SLEE became Lyonnaise des Eaux.
- 7.
See Chap. 8 for more information on the privatization of water and sanitation services by international consortia in Argentina.
- 8.
OTV is an engineering group within Veolia specializing in water engineering activities.
- 9.
According to their names “Veolia Environnement” and “Suez Environnement,” and corporative statutes. See Articles 3 of their corporative statutes http://www.finance.veolia.com/docs/Statuts-au-03-aout-2011.pdf; http://www.suez-environnement.fr/wp-content/uploads/2012/01/Statuts_SUEZ_ENVIRONNEMENT_Company1.pdf?9d7bd4
- 10.
Construction, local public services, health, communication, and all that relates to water in Barcelona.
- 11.
Veolia Environnement had 3.6 billion euros in assets for 12.9 billion euros in debts; Suez had 26 billion euros in debts in 2002, which fell to 13.9 billion euros with the transfer of 11 billion euros in assets, but the debt still exceeded the value of the assets.
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Bauby, P. (2014). Water Globalization: The Strategies of the Two French “Majors”. In: Schneier-Madanes, G. (eds) Globalized Water. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-7323-3_4
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