In a strategic move to invest in industrial automation, France-based Schneider Electric has made a takeover offer to UK engineering firm Invensys.
The French organisation is now required to make a formal offer by August 8 – Invensys’ board is likely to accept an offer of 505p per share (split between 319p in cash and 186p in shares), which would value the company at £3.3 billion.
London-headquartered Invensys produces software that help control flows in chemical plants and refineries, but also works in other sectors ranging from nuclear power to appliances.
Last year, the company’s shares fell as a result of failed takeover talks with US-based Emerson and of over-running costs on a number of nuclear plants it was building in China.
However, profits and shares have steadily recovered since November.
In May, the company’s rail division (currently working on a high-speed rail link in Saudi Arabia) was acquired by German giant Siemens.