Schneider Electric Confirms It is Considering Full Takeover of Aveva, Analyst Says Deal Makes Sense
2022.08.24 16:59
Schneider Electric Confirms It is Considering Full Takeover of Aveva, Analyst Says Deal Makes Sense
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.
