Britain-based Aveva Group merges with France based Schneider Electric’s software business

The two previous attempts at a mergers were unsuccessful due to its sheer complexity. This time with Schneider Electric separating its software business ahead of the merger proved instrumental in signing the deal.

On Tuesday, Britain-based Aveva Group disclosed that it has agreed to be acquired by France-based Schneider Electric’s software business and in the process create a London-listed industrial software company whose net worth will be more $3.88 billion (3 billion pounds).

Under the terms of the deal, the French company will have a 60% stake in the combined group, which is structured as a reverse takeover.

The development comes in the wake of two prior attempts at a merger by both companies in 2016 and 2016.

As per James Kidd, Aveva’s Chief Executive, the deal would provide Aveva a bigger presence in sectors including pharmaceuticals, oil and gas, mining, marine, food and beverages. It will also position Schneider in a better place in North America.

Learning on its previous attempts, Kidd, said this time, Schneider had done more work to separate its software assets, ahead of the deal.

As per the terms of the merger, Aveva’s shareholders will get 650 million pounds in cash from Schneider.

With the news of the merger reaching the market, Aveva’s shares have surged jumped by 24% to 23.78 pounds while Schneider Electric rose by 1.2% to 69.75 euros.

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