Schneider’s 2nd attempt to acquire Aveva ends abruptly

Bloomberg

Schneider Electric SE’s second attempt to buy a majority stake in U.K. software maker Aveva Group Plc proved short-lived after negotiations between the two companies ended just two days after they became public.
“Following the termination of the preliminary discussions,” Cambridge-based Aveva said on Wednesday in a short statement that it had applied for its shares to begin trading. It gave no details on the talks.
The two companies had sought to resurrect earlier talks that snagged on concern that the integration costs would be too high. Aveva on Monday described the latest discussions as “preliminary,” based on a deal proposal pitched six months ago whereby Schneider would buy a majority stake through a reverse takeover with a “significant cash payment” to Aveva.
That plan revived one unveiled in July to bring together the companies’ industrial software units and create a business that would help design and operate engineering projects from nuclear-power plants to diesel engines. That deal would have seen Aveva receive 550 million pounds ($786 million) and issue new shares to Schneider, giving the French company 53.5 percent of the resulting entity. The talks ended by mutual consent, they said Dec. 15.