Invensys agree £3.4bn takeover by French firm

Industrial software firm Invensys has agreed a £3.4 billion takeover by France's Schneider Electric, the latest takeover of a British company by a foreign rival.

The deal, which must be approved by shareholders, will bring together 16,000 employees at Invensys and Schneider's 140,000 staff, including a combined UK workforce of more than 4,600.

But Schneider warned of possible job losses as it revealed plans for cost savings of around 140 million euros (£122m) a year.

It said there was potential to cut costs in corporate and support functions where there is overlap, while it also signalled plans to offload non-core divisions within Invensys, including putting its appliance arm under review.

Invensys employs more than 1,100 people in the UK and has offices in Worthing and Crawley in West Sussex, as well as sites across the United States. It develops technologies for a wide range of sectors including oil refineries, air conditioning and household appliances.

Schneider has more than 3,500 employees across 15 sites in the UK, including major bases at Coventry and Telford.

Sir Nigel Rudd, chairman of Invensys, said there was a "strong strategic fit" between the two companies, adding that the cash and shares offer was a "very attractive outcome" for shareholders.

Jean-Pascal Tricoire, chairman and chief executive of Schneider, said it was an "exciting day" for both companies.

"We warmly welcome Invensys's team and believe that the combined business will provide new and larger growth opportunities for employees and customers," he said.