Aveva, a provider of engineering data and design IT systems for the oil and gas industry, has restarted merger talks with France’s Schneider Electric, specialist in energy management and automation. To remind, the two companies had abandoned merger discussions in December 2015, unable to reach agreement.
However, Aveva on Monday said has received a revised, conditional proposal from Schneider Electric SE for AVEVA to combine with Schneider Electric’s Software Business in exchange for new AVEVA shares to be issued to Schneider Electric.
Similar to the previous discussions that took place between the parties last year, the proposal also includes a significant cash payment from Schneider Electric to AVEVA, which would be distributed to AVEVA’s current shareholders upon completion, AVEVA said.
The proposed transaction, if consummated, would result in Schneider Electric owning a majority equity stake in the enlarged AVEVA, which is intended to remain listed on the London Stock Exchange.
“The Board of AVEVA is currently in preliminary discussions with Schneider Electric regarding the merits of such a transaction and its terms. There can be no certainty that the discussions between AVEVA and Schneider Electric will lead to any agreement concerning the possible combination or as to the timing or terms of any such agreement and there can be no assurance that, even if reached, any such agreement would be completed. A further announcement will be made as and when appropriate,” AVEVA said.