On Tuesday, Larson & Toubro (L&T) announced the sale of its Electrical and Automation (E&A) business to global company Schneider in what is a all cash deal for Rs 14,000 crore.
The shares of Schneider Electric Infrastructure climbed 19 percent to Rs 134.40 on the BSE in morning trade after Schneider Electric, the parent company, entered into an agreement with Larsen & Toubro (L&T), India’s leading engineering, technology and construction conglomerate, to buy its electrical & automation (E&A) business for an all-cash deal of Rs 140 billion on Tuesday. The French multinational Schneider Electric owns a 75 percent stake in its subsidiary Schneider Electric Infrastructure. The shares of Schneider Electric Infrastructure closed at Rs 122.65 at BSE on Tuesday.
At 12:31 pm; the shares of Schneider Electric Infrastructure were trading 15.49% higher at Rs 130.10 at S&P BSE Sensex.
On Tuesday, Larson & Toubro (L&T) announced sale of its Electrical and Automation (E&A) business to global company Schneider in what is a all cash deal for Rs 14,000 crore. In an exchange release, L&T said that it has entered into an agreement with a global players in energy management and automation in all cash-consideration of Rs 14,000 crore. The deal is subject to further regulatory approvals. According to the Bloomberg report, Schneider will own 74 percent of the unit when the deal is complete, while Temasek Holdings Pte will own the balance.
L&T’s through its electrical and automation business in involved in providing voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, and energy management systems.
The company’s manufacturing locations are spread across the country and foreign locations including Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysore in India as well as in Saudi Arabia, UAE (Jebel Ali, Dubai), Kuwait, Malaysia, Indonesia, and the UK.