French firms Alstom and Scheider Electric have joined hands to acquire the global transmission and distribution (T&D) business of Areva.
Alstom and Schneider Electric signed agreement with Areva today for the acquisition of its T&D business, the two companies said in a combined statement.
This agreement comes as a result of the exclusive negotiations that started between the two companies on November 30, 2009, and the completion of consultations of the relevant employee representatives.
Closing the transaction remains subject to the approvals of the relevant competition authorities and of the French Commission des Participations et des Transferts (CPT), which are expected in the later half of the current calender year, it said.
Alstom and Schneider Electric intend to build on the quality of the first contacts established with the management of Areva T&D in order to jointly prepare the future.
The two companies had jointly bid for acquiring transmission and distribution business of Paris-based Areva for an equity value of euro 2,290 million (about Rs 16,000 crore).
As per the agreement, the transmission business is likely to go to Alstom, while the distribution business may be retained by Schneider Electric.
In July 2009, Areva's supervisory board asked the executive board to put its T&D business up for sale to part-finance the group's long-term development plan.
The Indian operations of Areva T&D (India) are also part of the global power equipment firm Areva.
Areva T&D India is engaged in manufacturing equipment for power transmission and distribution companies.
