The final chapter in the life of Etienne Davignon is written in the world of business.
In 1985, he joined the Société Générale de Belgique. He presided over it from 1988 to 2001. This company, created even before Belgium’s independence, has over the decades become a powerful holding that has been actively involved in Belgium’s economic history and has controlled banking activities, as well as industrial activities, for example.
The rise of Etienne Davignon within the Société Générale de Belgique comes at a time when the company is the subject of a takeover bid, a public purchase offer, launched by an Italian, Carlo De Benedetti, a businessman whose reputation as a company fixer is intimidating. In Belgium, there is a stir to save the “Vieille Dame” that is the Société Générale.
At the time, Etienne Davignon is an important Belgian businessman. He sits on numerous boards of directors. His network probably enabled him to thwart De Benedetti’s maneuver.
The rescue of the Société Générale will involve a deal and cross-shareholdings, notably with the GBL group of the Belgian Albert Frère. This will allow the French group Suez to take control of the electrical activities of the Société Générale de Belgique. Tractebel, Electrabel (which later became Engie) will become flagship companies of the Suez group.
Accused by some of selling a portion of the Belgian economy abroad, Etienne Davignon defended himself. In 2019, he stated, “Did it cause job losses in Belgium? Did we pay less taxes? Did it affect Belgium’s normal economic situation? The answer to these questions is no. Companies are still here, many have developed very well, such as Umicore, CMB, etc. So it did not have a negative impact.”
In 2001-2002, Etienne Davignon was called upon to help after the bankruptcy of Sabena, the Belgian national airline. Together with businessman Maurice Lippens, head of Fortis, Etienne Davignon launched a project to save what could be salvaged from the former airline. They raised funds to launch “SN Brussels Airlines,” which has now become “Brussels Airlines.”
One of Vicomte Davignon’s final business ventures will also be a failure. In 2008, as Fortis bank, run by his friend Maurice Lippens, is facing financial turmoil and has to be saved by the state, Etienne Davignon’s name is proposed to chair what remains of the Fortis group, mainly the insurance activities. However, at the general meeting at Heysel, small shareholders express their outrage. Amidst jeers, Etienne Davignon does not secure the presidency of Fortis.
Since 2004, Etienne Davignon has been a Minister of State. And since 2017, the vicomte has been elevated to the rank of count.
