Off again: Aveva ends takeover talks with Schneider Electric for second time

CAMBRIDGE-based tech group Aveva has ended talks about a possible takeover deal with Schneider Electric for a second time.

Shares in Aveva fell 16.7% this morning, down 308.5p to 1,546 at 8:20am.

The on-off saga kicked into life nearly a year ago when the two sides agreed to a complex £1.3 billion reverse takeover but talks ended abruptly in December due to “integration challenges”.

Aveva, which makes software for the oil and gas industry, said on Monday it was again discussing a potential deal with Schneider – but now those talks are off too, leaving investors spinning.

The deal would have seen Schneider receive new Aveva shares in an enlarged company listed on the London market.

In exchange, Aveva would have got cash from Schneider.

The deal would have brought Aveva together with Invensys, another Brit tech firm Schneider owns which was rebranded as Schneider Electric.

It’s the latest blow for Aveva shareholders. Aveva’s stock price previously crashed 30% in December after talks were originally terminated.