L&T to divest electric and automation division for Rs. 14,000 crore

India’s leading conglomerate Larsen & Toubro has informed the bourses that it has signed agreements with Schneider Electric, a global player in energy management and automation, to divest electrical & automation (E&A) business for a consideration of Rs. 14,000 crore. Post closure of this deal, Schneider Electric will have 74 per cent stake in L&T’s E&A division. 

Larsen & Toubro’s E&A business offers a wide range of low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions. 

This transaction covers all segments of E&A business except marine switchgear and servowatch systems. 

The company stated that this development is aligned with its stated goal of unlocking value for future growth. This will help L&T to concentrate on their core business activity. 

For the 9MFY18, Larsen's E&A division generated revenue of Rs. 3,590 crore.