Aveva, a provider of engineering data and design IT systems for the oil and gas industry, has informed that a proposed merger with France’s Schneider Electric, specialist in energy management and automation, has fallen through.
The UK-based company said Tuesday that following a period of extensive due diligence the Boards of Aveva and Schneider Electric have been unable to reach agreement and discussions have been terminated by mutual consent.
The proposed merger had been announced in July. Under the proposed deal, Aveva was to acquire Schneider Software on a debt-free cash-free basis and receive from Schneider Electric upon completion £550 million for new Aveva shares to be issued to Schneider Electric. Schneider Electric was to own 53.5% of the Enlarged Aveva Group.
However, in a statement on Tuesday, Aveva said that during the due diligence process significant integration challenges were identified that could not be overcome without considerable additional risk and cost.
“This was exacerbated by the highly complex structure of the proposed transaction. As a result, the Board has determined that the anticipated uplift in shareholder value was unlikely to have been realised to the extent previously considered,” Aveva said in the statement.
Offshore Energy Today Staff