Business

Schneider CFO says Aveva deal ‘not an absolute must’

French industrial group Schneider Electric (SCHN.PA) said on Thursday it was still pursuing the full takeover of Aveva (AVV.L), but added the deal must make sense from both a financial and strategic perspective.

“This is not an absolute must-do deal for us,” Chief Financial Officer Hilary Maxson said in an earnings call, adding the group could also opt to maintain its 59% ownership.

The group in September said it would proceed with the full takeover of the British software company, offering 31 pounds per share in a deal valuing the whole company at around 9.48 billion pounds ($11 billion).

Asked about other M&A opportunities, Maxson said the group was happy with its current portfolio and there was nothing “glaringly jumping out” at it at the moment.

The electrical equipment maker reported better-than-expected third-quarter revenue at 8.8 billion euros ($8.85 billion), citing strong demand across the board.

“We do still remain in a dynamic and uncertain environment from a supply chain standpoint,” Maxson said.

The group also confirmed its July forecast for 11-15% organic growth in adjusted core profit (EBITA) for the full year.

The group said it expected inflationary pressures to start easing, particularly in raw materials, though the effect on the group will only be visible next year.

Shares in Schneider were down 4.4% at 0950 GMT following the guidance confirmation.

($1 = 0.9939 euros)

($1 = 0.8643 pounds)