General Electric and Suez: Deal or No Deal?
Teaching Case (peer-review), Ivey/Temple, 2019: https://www.iveypublishing.ca/s/product/general-electric-and-suez-deal-or-no-deal/01t5c00000CwquLAAR
Posted: 15 Nov 2019 Last revised: 13 Feb 2024
Date Written: May 10, 2019
Abstract
On Wednesday, March 1, 2017, Jean-Louis Chaussade, the chief executive officer (CEO) of Suez SA (Suez), a French utility company that primarily operated in water and waste management, had to decide whether or not to acquire General Electric Water & Process Technologies. During the negotiations between Chaussade and the CEO of General Electric Company (GE), there had been many drastic changes, including the January 2017 inauguration of a US president with no political experience and an agenda that did not favour international co-operation. The deal represented a significant investment of US$2–$3 billion, and Suez would have to rely on an external partner to have even a chance of winning the bid GE had launched only a few weeks earlier. The complex negotiations were also fraught with risks due to increasing political interference from the new US president. What should Chaussade do?
Keywords: Globalization, Sustainability, Drinking Water, Mergers and Acquisitions, France, GE, Strategy
JEL Classification: A, F, M, O
Suggested Citation: Suggested Citation