L&T sells electrical unit to Schneider Electric for Rs 14,000 cr

Wednesday, 02 May 2018, 04:12 Hrs
cmt right
Comment Right
cmt right
cmt right
Printer Print Email Email

Engineering and construction conglomerate Larsen and Toubro (L&T) signed a deal with French multinational Schneider Electric to sell its electrical and automation (E&A) business to the latter for Rs 14,000 crore ($2.1 billion).

According to an L&T statement here, the transaction would be an all-cash deal, without recourse to loans.

"Larsen & Toubro today signed, subject to regulatory approvals, definitive agreements with Schneider Electric for strategic divestment of its electrical and automation (E&A) business for an all-cash consideration of Rs 14,000 crore," the statement said.

The electrical and automation business of the company includes low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions, it said. 

However, the transaction does not include marine switchgear and Servowatch Systems, according to the company.

Commenting on the deal, L&T Chief Executive S.N. Subrahmanyan said in a statement: "The divestment of E&A business is in line with L&T's stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and management focus for creating long-term value for our stakeholder." 

The company's E&A business reported a net revenue of Rs 5,038 crore during the financial year 2016-17, the statement said. 

Read more news:

Infosys bets on digital technology to drive business

Twitter co-founder invests in Indian AI-powered health chatbot

Source: IANS
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..