Bulletin: Schneider Electric's Acquisition In India Unlikely To Affect Ratings

MILAN (S&P Global Ratings) May 2, 2018--S&P Global Ratings said today that our ratings and outlook on French energy management company Schneider Electric S.E. (A-/Stable/A-2) are unlikely to be affected by Schneider's acquisition of the electrical and automation business formerly owned by Indian Larsen&Toubro in an all-cash transaction worth $2.1 billion (approximately €1.6 billion). Singapore-based sovereign wealth fund Temasek is partnering up with Schneider and will own 35% of the entity. We believe that the acquisition has a good fit with Schneider's portfolio, because it further strengthens its positions in energy management and industrial automation business while opening up the Indian market, which has solid growth prospects and supportive demographic trends. Following the acquisition, India will become Schneider's

...MILAN (S&P Global Ratings) May 2, 2018--S&P Global Ratings said today that our ratings and outlook on French energy management company Schneider Electric S.E. (A-/Stable/A-2) are unlikely to be affected by Schneider's acquisition of the electrical and automation business formerly owned by Indian Larsen & Toubro in an all-cash transaction worth $2.1 billion (approximately 1.6 billion). Singapore-based sovereign wealth fund Temasek is partnering up with Schneider and will own 35% of the entity. We believe that the acquisition has a good fit with Schneider's portfolio, because it further strengthens its positions in energy management and industrial automation business while opening up the Indian market, which has solid growth prospects and supportive demographic trends. Following the acquisition, India will become Schneider's third-largest country in terms of revenues (after China and the U.S.), and on par with France. We expect that the combined entity, to which Schneider will contribute...

Bulletin