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Schneider Electric in talks to purchase Areva T&D

Schneider Electric and Alstom are in exclusive negotiations with the Supervisory Board of Areva to acquire Areva’s transmission and distribution business, Areva T&D.

According to Schneider Electric and Alstom — Schneider Electric’s transmission business — Areva T&D fits perfectly with the company’s medium voltage business. The combination of the two entities will create a specialist group with global reach in the field of medium voltage, the companies said.

Areva T&D offers solutions to bring electricity from the source onto the power network. The company builds high- and medium-voltage substations and develops technologies to manage power grids worldwide.

If the deal to purchase Areva T&D is approved, it would essentially accelerate Schneider Electric’s already-existing strategy to better-capture the opportunities offered by a booming global energy market, the company said.

Areva T&D, like Schneider Electric, is a French company. Areva T&D generated sales in 2008 of close to AUD$2.8 billion and, when combined with Schneider Electric’s medium voltage business, is likely to make AUD$7.4 billion of sales, according to Schneider Electric.

Though the deal is still subject to agreement from employee representatives, the competition authorities and the Commission des Participations et des Transferts — an independent authority that issues opinions on the valuation of companies in France — Schneider Electric has already announced that the deal will form a new business, called ‘Energy’, along with four other activities: Power, IT, Industry & CST, and Buildings.

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