Schneider could announce $5 billion Invensys deal on Wednesday: reports

Jean-Pascal Tricoire, CEO of Schneider Electric
Antoine Antoniol | Bloomberg | Getty Images
Jean-Pascal Tricoire, CEO of Schneider Electric

France's Schneider Electric is nearing a 3.3 billion pounds ($5.07 billion) deal to acquire British engineer Invensys and could announce the agreement at its results on Wednesday, three people with direct knowledge of the matter said.

The structure of the share and cash deal is expected to remain roughly the same as the one initially presented earlier this month as no other bidder has emerged to challenge Schneider's bid, the sources said.

Schneider previously said it would pay 505 pence a share with 319 pence in cash and 186 pence in new Schneider shares.

Invensys had said it was likely to recommend such an offer, which would represent a 15 percent premium to the stock's close when the announcement was made.

Invensys, which produces software that helps to run power stations, oil refineries and chemical plants, has long been mooted as a takeover target in an industry dominated by larger rivals, particularly after the disposal of its rail business last year to strengthen its balance sheet and pension fund.

Its reorganization after the rail disposal is on course to deliver cost savings of 20 million pounds during the current financial year and a further 5 million pounds the following year. This, as well as growth in its higher-margin software division, is expected to boost performance for the year.

Schneider and Invensys declined to comment.