NEW DELHI: Infrastructure major Larsen & Toubro (L&T) has sold its Electrical & Automation (L&T E&A) business to Schneider Electric, a global player in energy management and automation. The deal, which was first announced in May 2018 is now complete, with the companies having acquired the requisite regulatory approvals and fulfilling the necessary conditions.
“The divestment is in line with L&T’s stated goal of unlocking value for future growth,” said L&T, adding that its exit from the business is part of the strategic portfolio review process.
A M Naik, Group Chairman, Larsen & Toubro said: “The closure of divestment of the E&A business is a key milestone in our stated long-term strategy. The challenge was to carve out a business of this scale, with minimum disruption to the sprawling customer base and do it all amid the constraints of a pandemic”. S N Subrahmanyan, CEO & MD, L&T said the all-cash deal would create a stronger balance sheet.
“This is in sync with our strategy to look at L&T in broadly three areas, EPC Construction & Projects, Manufacturing & Defence and Services,” he added. Manufacturing facilities in Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysuru will also be transferred.