Schneider Electric Infra surges 19% as parent co agrees to buy L&T unit

Schneider Electric Infrastructure has surged 19% to Rs 135 on the market on back of heavy volumes after parent company Schneider Electric entered into a definitive agreement with Larsen & Toubro (L&T) to buy its electrical & automation (E&A) business for an all-cash consideration of Rs 140 billion.

Schneider Electric Infrastructure is subsidiary of Schneider Electric, in which the French multinational owns a 75% stake.

L&T said it’s E&A business offers a wide range of low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions. The E&A business reported net revenue of Rs 50 billion during FY2016-17.

The transaction includes all the current business segments of E&A except marine switchgear and servowatch systems, L&T said in a statement.

Schneider Electric will partner investment company Temasek for the deal, which took merchant bankers to several cities within India and overseas, the Business Standard reported.