France’s Schneider Electric explores takeover of Aveva

Schneider Electric is exploring the possibility of a full takeover of UK-based software developer Aveva, sending shares in the London-listed group soaring.

The French conglomerate on Wednesday said it was looking into buying the remaining 40 per cent of Aveva that it does not already own. No proposal had yet been put to Aveva shareholders, Schneider said in a statement, “and there can be no certainty that any offer will be made, nor as to the terms on which any offer will be made”.

Shares in Aveva jumped 32 per cent in early afternoon trading in London to £29, valuing the FTSE 100 company’s equity at almost £9bn. The shares have struggled this year, with Wednesday’s gains trimming their 2022 decline to about 14 per cent.

Cambridge-based Aveva this year warned that the war in Ukraine and higher staffing costs would bite into revenue growth and margins for this financial year.

The industrial software company has, in recent years, sought to expand its client base outside its traditional strengths in the oil and gas industry.

Schneider has a deadline of 4pm on September 21 to make an offer for Aveva.