France’s Schneider agrees £3.4bn takeover of Invensys
Wednesday 31 July 2013
France's Schneider Electric has agreed a £3.4 billion deal for Invensys in a move that could lead to jobs cuts for UK workers.
The takeover, which was first mooted earlier this month, still needs to be rubber-stamped by shareholders but looks set to succeed after a rival bid for the engineering group failed to emerge.
Schneider said it hoped to make cost savings of about €140 million (£122 million) a year from the enlarged group, raising the prospect of redundancies across its global workforce, which will include 4600 employees in the UK.
Invensys makes components for oil refineries, power stations and domestic appliances.
The company held takeover talks with US giant Emerson Electric last year and has been named as a prime takeover target since selling its rail division to German high-speed train maker Siemens for £1.7 billion in May.
Its chairman Sir Nigel Rudd — dubbed “the man who sold Britain” because of his role in the sale of a number of British companies including Pilkington and Boots, overseas — said today: “Combined with the disposal of Invensys Rail and return of £625 million to shareholders, this represents a very attractive outcome for Invensys shareholders.
“Furthermore, the members of the Invensys Pension Scheme will benefit from the ongoing support of a significantly larger, leading, global automation business.”
Schneider, which is based on the outskirts of Paris, hopes the deal will help it take on global rivals such as Siemens and Mitsubishi.
The company will offer Invensys staff generous retention packages to stay with the group once the deal is completed.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 War is war: Why I stand with Israel
- 5 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: The terrible price children are paying for Israel’s war with Hamas
Online trolls target alleged rape victim Jada, by copying how she appeared in video of attack
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
War is war: Why I stand with Israel
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...