MUMBAI - India's Larsen & Toubro has agreed to sell its electrical and automation business to Schneider Electric SE for 140 billion rupees ($2.11 billion) in cash, it said on Tuesday.
The deal, part of L&T's plan to sell its non-core units, covers all segments of its electrical and automation business except marine switchgear and servowatch systems, the top Indian engineering group said https://www.bseindia.com/xml-data/corpfiling/AttachLive/7c638062-1c8d-4362-b4bb-6da78d551c2a.pdf in a statement.
The electrical and automation (E&A) business, which has factories in India as well as in Saudi Arabia, the United Arab Emirates, Kuwait, Malaysia, Indonesia and the United Kingdom, had a net revenue of 50.38 billion rupees, or about 4.5 percent of L&T's consolidated revenue, for the year to March 2017.
"The divestment of E&A business is in line with L&T's stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and management focus for creating long-term value for our stakeholders," the company's chief executive, S.N. Subrahmanyan, said in the statement.
The deal is expected to close in 18 months, L&T said.