Schneider Electric: complicated merger with Aveva.
(CercleFinance.com) - After several failed attempts, this time seems to be good: Schneider Electric and Aveva have agreed to merge to create a world leader in industrial and engineering software.
Both groups will associate their respective activities in a company controlled by Schneider, which will remain listed on the London Stock Exchange.
In detail, the company Aveva will continue to exist in a new form and will remain listed on the London Stock Exchange. However, before that, Schneider will have taken control of it, with a 60% stake (i.e. a value of 1.7 billion pounds), thanks to a reserved capital increase. In addition, Schneider will pay Aveva 550 million pounds in cash, and will contribute its related businesses.
Synergies have been mentioned, although have not been specified. The merger should be settled around the end of 2017. Once the deal is finalized, Aveva, whose operating margin will enhance that of Schneider Electric, will be consolidated in Schneider Electric's Industry division, Schneider said.
The Group's new consolidation scope would have generated 657.5 million pounds in sales and 145.8 million pounds in EBITA over the 12-month period to end-March 2017.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
Both groups will associate their respective activities in a company controlled by Schneider, which will remain listed on the London Stock Exchange.
In detail, the company Aveva will continue to exist in a new form and will remain listed on the London Stock Exchange. However, before that, Schneider will have taken control of it, with a 60% stake (i.e. a value of 1.7 billion pounds), thanks to a reserved capital increase. In addition, Schneider will pay Aveva 550 million pounds in cash, and will contribute its related businesses.
Synergies have been mentioned, although have not been specified. The merger should be settled around the end of 2017. Once the deal is finalized, Aveva, whose operating margin will enhance that of Schneider Electric, will be consolidated in Schneider Electric's Industry division, Schneider said.
The Group's new consolidation scope would have generated 657.5 million pounds in sales and 145.8 million pounds in EBITA over the 12-month period to end-March 2017.
Copyright (c) 2017 CercleFinance.com. All rights reserved.