Schneider to buy L&T unit for Rs 140 billion

L&T Limited has signed a definitive agreement with Schneider Electric for the sale of L&T’s electrical and automation business for an all-cash consideration of Rs 140 billion. Schneider Electric has formed a consortium with Singapore’s state investment firm Temasek Holdings for the proposed deal. Under the deal, both partners will make fresh investments in Schneider’s wholly owned subsidiary, Schneider India, which in turn will buy out L&T Electrical and Automation. After the completion of the deal, Schneider Electric will hold a 65 per cent stake in the company, while the remainder will be held by Temasek, which will invest Rs 50.75 billion cash as its share of equity.