Reuters 31 July 2013
France’s Schneider Electric is to buy British engineer Invensys for an agreed 3.4 billion pounds ($5.2 billion) to strengthen its high-margin industrial automation business and win more custom in the fast-growing energy sector.
* To pay 502 pence a share in cash and shares
* Close to original proposal, though cash element higher
* Deal seen EPS accretive from 2014 and delivering savings
* Schneider shares up 4 pct, Invensys up 2 pct
Schneider said on Wednesday it would pay 502 pence a share in cash and stock, 14 percent above Invensys’ closing price the day before talks between the two firms were disclosed.
That is just below an initial proposal of 505 pence a share after other bidders failed to emerge, although the cash component is higher, at 372 pence, than the original 319 pence.