Larsen & Toubro, India’s largest engineering and construction company, has agreed to sell its electrical unit to a consortium led by Schneider Electric SE, people with knowledge of the matter said.
A deal, which values Larsen’s electrical and automation division at about Rs 140 billion including debt, could be announced as soon as this week, said the people, who asked not to be identified because the details are private. Schneider will own 74 per cent of the unit when the deal is complete, while Temasek Holdings will own the balance, the people said.
The company, which makes submarines, and builds airports to nuclear power plants, has been pruning non-strategic and sub-scale businesses.
It plans to spur growth through acquisitions in information technology. The Mumbai-based firm had expected to sell the electrical division by March, Chief Financial Officer R Shankar Raman said in a November 20 interview.
A representative for Temasek said the firm doesn’t comment on market rumours, while spokesmen for Larsen and Schneider declined to comment. Read More
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