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Anglo-French merger between Schneider Electric & Aveva dead and buried

According to the International Business Times, the $AUD1.16 billion proposed merger between French company Schneider Electric and UK engineering software provider Aveva is officially dead, with both companies saying the deal was too “risky and expensive.” 

Aveva, which makes software for the design of oil rigs and nuclear power plants, said the merger risked reducing its exposure to oil and gas markets, which is thought to be around 45 per cent of its total revenue. 

“The risk element got beyond bearable from our shareholders' point of view,” Aveva CEO Richard Longdon was quoted as saying. He said the software assets that Schneider wanted to merge with Aveva were very much intertwined with Schneider, but also added that separating them “was more complicated than originally envisaged.” 

“During the due diligence process, significant integration challenges were identified that could not be overcome without considerable additional risk and cost,” Aveva said in a news release.  

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