French Major Schneider, Temasek Snap Up L&T’s Electrical, Automation Biz For Rs 14K CR

French energy management and automation solutions giant Schneider Electric and Singaporean sovereign wealth fund Temasek Holdings today snapped up engineering major Larsen & Toubro’s electrical and automation (E&A) business for Rs 14,000 crore in an all-cash deal.

While Schneider will own 65 per cent, Temasek will control 35 per cent shareholding in Schneider Electric India, the Singaporean investor said in statement. The French major entered the country in 1995.

Earlier in the day, L&T said it has decided to divest its E&A business, which had net revenue of Rs 3,590 crorein the first nine months of FY18 and Rs 5,038 crore in FY17, as part of its broader strategy of unlocking value from its existing verticals and better allocate capital.

Accordingly, it has agreed to sell the E&A business to Schneider Electric for a consideration of Rs 14,000 crore, subject to regulatory approval, which is  expected to be in over the next 18 months.

The transaction includes L&T’s electric and automation unit except the marine switch gear and servowatch systems.

“The divestment of E&A business is in line with our stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and the management focus for creating long-term value for stakeholders,” L&T chief executive and managing director SN Subrahmanyan said in a statement. The Rueil-Malmaison, France-headquartered Schneider Electric SE is a 180-year-old multinational corporation that specialises in energy management, automation solutions, spanning hardware, software, and services.