Larsen & Toubro (L&T), India’s leading engineering, technology, construction and financial services conglomerate, today announced the closure of the strategic divestment of its Electrical & Automation (L&T E&A) business to Schneider Electric. 

 

The divestment is in line with L&T’s stated goal of unlocking value for future growth. L&T continuously evaluates its business portfolio and takes capital allocation decisions from a long-term perspective. Its exit from the Electrical & Automation Business is a part of the strategic portfolio review process.

 

Commenting on the closure of this divestment, AM Naik, Group Chairman, Larsen & Toubro said, “We believe Schneider Electric is the right partner to grow the business that L&T had nurtured and grown over decades. We truly believe that this deal with Schneider Electric is a win-win for our employees, business partners and shareholders.”

 

SN Subrahmanyan, CEO & MD, Larsen & Toubro said, “This all-cash deal will help us create a much stronger balance sheet, thereby creating long-term value opportunities for our stakeholders by focusing on key aspects of business. The deal was a complex M&A transaction involving slump sale of the domestic business and share purchase transfer. This is in sync with our strategy to look at L&T in broadly three areas, EPC Construction & Projects, Manufacturing & Defence and Services.”

 

L&T’s E&A business with its wide range of low and medium voltage switchgear, electrical systems, industrial and building automation solutions, energy management systems, metering solutions and projects and services business are transferred to Schneider Electric.