Temasek said to be involved in deal to buy unit of India’s largest engineering and construction firm for $2.8 bil

(May 2): Larsen & Toubro Ltd., India’s largest engineering and construction company, has agreed to sell its electrical unit to a consortium led by Schneider Electric SE, people with knowledge of the matter said.

A deal, which values Larsen’s electrical and automation division at about 140 billion rupees ($2.8 billion) including debt, could be announced as soon as this week, said the people, who asked not to be identified because the details are private. Schneider will own 74% of the unit when the deal is complete, while Temasek Holdings will own the balance, the people said.

The company, which makes submarines and builds airports and nuclear power plants, has been pruning non-strategic and sub-scale businesses. It plans to spur growth through acquisitions in information technology. The Mumbai-based firm had expected to sell the electrical division by March, Chief Financial Officer R. Shankar Raman said in a Nov 20 interview.

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