Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Schneider Electric Confirms It is Considering Full Takeover of Aveva, Analyst Says Deal Makes Sense

Published 24/08/2022, 11:10 pm
Updated 24/08/2022, 11:10 pm
© Reuters.

By Senad Karaahmetovic

Schneider Electric SE (EPA:SCHN) confirmed media rumors that it is considering a bid to buy out minority shareholders of AVEVA Group (LON:AVV), sending London-listed shares of the software maker over 30% higher today.

Bloomberg News reported earlier today on Schneider’s intentions before the industrial conglomerate confirmed the story. Schneider Electric already owns around 60% of Aveva and is now considering making an offer to other shareholders.

The aim behind a full takeover is that it would help Schneider to faster execute its growth strategy, the company said. However, no bid has been made yet with Schneider Electric adding that there can be no certainty that any offer will be made.

A Jefferies analyst believes a full takeover “makes sense” given Aviva’s close ties with Schneider. He adds that a potential $8 billion deal would imply Aveva’s valuation reaches 4.7x revenues and 22x PE.

Aveva shares are up over 31% in London today to push its market cap to over $10 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.