Cuts looming as Invensys is sold on to Schneider Electric
France's Schneider Electric has agreed a £3.4bn deal for Invensys in a move that could lead to jobs cuts for UK workers.
The takeover, which was first mooted earlier this month, still needs to be rubber-stamped by shareholders but looks set to succeed after a rival bid for the engineering group failed to emerge.
Schneider said it hoped to make cost savings of about €140m (£122m) a year from the enlarged group, raising the prospect of redundancies across its global workforce, including 4,600 in the UK.
Invensys makes components for oil refineries, power stations and domestic appliances.
The firm was named as a prime takeover target since selling its rail division to German train maker Siemens for £1.7bn in May.
Its chairman Sir Nigel Rudd – dubbed "the man who sold Britain" because of his role in the sale of a number of British companies including Pilkington and Boots, overseas – said: "Combined with the disposal of Invensys Rail and return of £625m to shareholders, this represents a very attractive outcome for Invensys shareholders."