L&T Divests Electrical & Automation Biz to Schneider Electric
Larsen & Toubro (L&T has announced the closure of the strategic divestment of its Electrical and Automation (L&T E&A) business to Schneider Electric, a global player in energy management and automation, for ?14,000 crore in an all-cash deal. The company said it will use the proceeds to capital allocation decisions from a long-term perspective The deal is now complete after receiving the requisite regulatory approvals and fulfilment of necessary conditions. L&T has said that its exit from the electrical and automation business is a part of the strategic portfolio review process. “The closure of divestment of the E&A business is a key milestone in our stated long-term strategy. The challenge was to carve out a business of this scale, with minimum disruption to the sprawling customer base and do it all amid the constraints of a pandemic," AM Naik, Group Chairman, Larsen & Toubro said. About 5,000 employees of the E&A business will become part of Schneider now. The manufacturing facilities of E&A in Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysuru in India and related subsidiaries in UAE, Kuwait, Malaysia and Indonesia are also being transferred to Schneider Electric.
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