France’s Schneider to buy rest of Aveva in $11 billion deal By Reuters

© Reuters. The Schneider Electric logo is seen outside a corporate building in Nantes, France, September 20, 2022. REUTERS/Stephane Mahe

PARIS/LONDON (Reuters) – French industrial group Schneider Electric (EPA:) has announced that it will take full control of British software company Aveva Plc, offering 31 pounds a share in a deal valuing all of Aveva at around 9.48 billion pounds ($10.8 billion).

Schneider said its offer represented a premium of around 41% to Aveva’s closing share price of 21.92 pounds on August 23, before Schneider first declared its intention to consider a takeover. complete.

Shares of Aveva rose 2.2% in early trades in London, while Schneider Electric fell 1%.

Schneider already owns nearly 60% of Aveva. It took majority control in 2017 in a reverse takeover that saw the British company retain its London listing. The French group paid 3 billion pounds at that time.

He said Aveva’s software would remain “completely agnostic,” meaning it will work with or without Schneider Electric hardware, and would continue to be a standalone business, with its workers not onboarded. to the Schneider teams.

The French company said this approach would retain Aveva’s “specific culture as a software publisher”. Aveva’s products are used to design and manage oil rigs, ships and chemical plants, while the French multinational covers electrical components, energy management and industrial automation systems.

Analysts at Jefferies and Credit Suisse said the plan to keep the company agnostic and independent raises questions.

Jefferies said that while he could see the industry logic in areas such as accelerating software as a service and cost efficiency, “we find evaluation costly and need answers (as to) why it’s not pursuing no greater hardware integration”.

Schneider added that any interim dividend up to 13 pence would still be paid to Aveva shareholders without any reduction.

($1 = 0.8809 pounds)

Comments are closed.