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Just days after Veolia finally sealed a deal to buy rival Suez, Antoine Frérot feels relaxed enough to describe himself in Machiavellian terms.
“Machiavelli said that whoever wants the end, accepts the means. . . I’m as rational as Machiavelli, ”the head of Veolia told the Financial Times.
But aside from ironic comments, Frérot rejects suggestions – both from Suez and more broadly in Paris – that he was too aggressive in the fight for his company’s water and waste competitor.
“There was no question of morale in what happened. There were only two incompatible goals, “he said. “In the face of the deviation. . . I’m simple. I repeat with what I call firmness, not violence ”.
The battle ended in a very Parisian way: at the high-end Bristol hotel after a three-star chef had served room service.
Next to Frérot’s table was Philippe Varin, president of Suez and senior statesman. Beside him were a member of the board of each side, an observer appointed by the court and Gérard Mestrallet, the former head of Suez who had been called to mediate.
The French state, which had already tried and could not finish the fight, was not present. According to people familiar with the matter, Frérot insisted that Bertrand Camus, Suez’s chief executive, not be in the room.
The two CEOs had barely spoken since October, when Veolia bought 29.9% of Suez from French energy group Engie and pledged to recoup the rest. Suez fought, with Camus fierce in his struggle to remain independent.
Despite promises to convince the Suez Council, a hostile offer was finally launched in February and Veolia stacked pressure on its target. Board members were threatened with criminal charges. And an agreement was only announced this week, as pressure increased on both sides.
Last Sunday, after long negotiations, Suez agreed to be bought by Veolia, which raised its price from € 18 to € 20.50 per share. Veolia said it would resell a piece of Suez, including assets that would have been sold to outperform competition regulators, to create a smaller competitor. Legal threats should be abandoned. Shareholders on both sides are happy.
The price, according to Frérot in the FT, was “very close to the ceiling” of what they were willing to pay. He also stressed that the governance of the new Suez was crucial because, if “it collapses in a few years, I will be responsible,” and that he had insisted on management payment limits in the new Suez and closures before selling. the assets.
Varin and Frérot decided to divide 80% of the capital of the new Suez between private capital groups allied to both parties. Ardian, who aligned with Suez and wants to control the new group, is not happy, they say people reported on the issue.
For Frérot, 62, the deal, which has been on his mind for years, is an opportunity to create the “champion of ecological transition” by combining the two largest water and waste groups in the world. .
Suez and Veolia, each with long histories, had approached each other before. In 2012, Suez attempted to incorporate Veolia for three years into Frérot’s term.
Coming out of the financial crisis, Frérot had to reduce debt and change strategy, achieving the enmity of Henri Proglio, who had appointed him. The lessons he learned from the challenges of the boardroom have been taken advantage of.
“When it comes to big changes. . . you have 20% of people who agree with it and want to bet on it, 20% of people who are against it and want to stop you. And there are 60% waiting to know who will win, ”he said. “So, unfortunately, you need to get rid of the 20 percent that pulls the brakes and convince the 60.”
If the obstacles to competition are removed, Frérot will lead a group with revenues of 37 billion euros from his office in the northern suburbs of Paris. It is a long way from when his father, a field doctor, “bet” on sending the 15-year-old Frérot to the school of the famous Lycée Louis-le-Grand in Paris.
From here he followed a well-trodden path of the French elite, through the École Polytechnique de France, an engineering college that expels top executives.
Divorced and the father of three daughters, Frérot now lives in the wealthy 3rd district, but is a little out of the Parisian ensemble.
Private man, he resists sharing too much of himself in the office, not wanting his decisions to be influenced by personal factors. This means that, according to a former colleague, it has depths that most do not see.
A student of philosophy and sociology, he reread a biography of Claude Lévi-Strauss during his war with Suez. He smokes Craven cigarettes and collects “external art”. The first time he bought a painting was when he was doing military service in Germany for 100 German marks.
Another former colleague said Frérot had “a long memory” and “does not forgive easily.” But he may have to show himself another side as he tries to integrate an injured Suez. A man who has vocally supported a more inclusive form of capitalism must dismiss accusations of going too far.
“Opinion on Frérot will remain divided,” said a banker who advised Suez. “He was a good general on the battlefield, he told people to go out and kill them and they did. But is violence the best way to get a good result? Integrating these companies will not be easy. “
But Frérot leans to bring the groups together and has an eye on his legacy. What’s more, his bet is that “if you don’t change the goal, people will end up believing it”.
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