L&T gains on completing divestment of E&A business

India’s leading engineering multinational conglomerate, Larsen & Turbo (L&T) announced on Monday about the strategic divestment completion of its electrical & automation (E&A) business arm to Schneider Electric, a global specialist in energy management and automation.

The deal, valued at Rs 14,000 crore for an all-cash transaction, was first announced in May 2018. It was completed after satisfying necessary conditions and on receiving the requisite regulatory approvals.

L&T’s exit from the E&A business is part of its long-term strategy and the company's goal of unlocking value for future growth. Moreover, the all-cash deal will help the company to strengthen its balance sheet thereby, creating value for the stakeholders. The deal is in sync with the company’s strategy to focus on broadly three areas namely, EPC construction & projects, manufacturing, defence, and services.

On Tuesday at 10.08 am, the share of L&T is trading at Rs 955.85 with gains of 1.12 per cent and on the other hand, the share of Schneider Electric Infrastructure gained 6.29 per cent and was trading at Rs 85.35 on BSE.