Mumbai: L&T, India’s largest engineering and construction company on Tuesday said it has signed a definitive agreement with Schneider Electric for strategic divestment of its electrical and automation (E&A) business for an all-cash consideration of Rs 14,000 crore. The E&A vertical reported net revenue of Rs 5,038 crore in FY17.
The deal includes all the current business segments of E&A except marine switchgear and servowatch systems.
L&T’s E&A business offers a wide range of low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions.
The transaction, which is in line with the company’s stated goal of unlocking value for future growth, is expected to close in next 18 months subject to regulatory approvals. Schneider Electric specialises in energy management and automation business.
