Schneider Electric SE said it’s considering a bid to buy out minority shareholders of industrial software developer Aveva Group Plc.
(Bloomberg) — Schneider Electric SE said it’s considering a bid to buy out minority shareholders of industrial software developer Aveva Group Plc.
The French industrial conglomerate believes a full combination with Aveva would help it execute its growth strategy faster, it said in a statement Wednesday that confirmed an earlier Bloomberg News report. It already owns about 60% of London-listed Aveva.
Schneider said no proposal has been made to Aveva yet and there’s no certainty it will proceed with an offer. Under UK takeover rules, it has until 5 p.m. on Sept. 21 to make a bid.
Shares of Aveva were up 34% at 12:29 p.m. Wednesday in London, putting the company on track for a record daily gain and giving it a market value of about £8.9 billion ($10.5 billion). Aveva had lost nearly half its value in the 12 months through Tuesday.
Schneider Chief Executive Officer Jean-Pascal Tricoire has been offloading non-core businesses and channeling more investment into areas that help companies with the shift to digitalization.
Cambridge, England-based Aveva provides software tools for utilities, oil and gas producers, transportation firms and other companies, according to its website.
Schneider took control of Aveva after agreeing in 2017 to combine its own industrial software business with the British company. Aveva has since bulked up further through acquisitions, buying SoftBank Group Corp.-backed industrial software maker Osisoft in 2020 at a valuation of $5 billion including debt.
Aveva’s original deal with Schneider prevented the French company from boosting its stake for two years after the deal closed, and capped its holding below 75% for a further 18 months unless certain conditions were fulfilled.
(Updates with confirmation from first paragraph)
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