Invensys Operations Management set for acquisition 16 July 2013

The possible acquisition of Invensys Operations Management (IOM) for $5.0 billion by Schneider Electric, has led to speculation of a bidding war for the UK control systems engineering company.

"IOM has long been viewed as a takeover target, with Emerson calling off initial talks regarding an acquisition in the first half of 2012," comments Alex West, associate director, process, machinery and instrumentation for analyst IHS in the US.

"However, other industrial automation giants, including ABB and Siemens as well as General Electric, also have all reportedly made preliminary contact previously," he continues.

"With its offer, Schneider Electric has taken control of what could break out into a full-scale bidding war for IOM."

While Invensys has a significant presence in the energy and controls industries, with a significant standing as an industrial software supplier, more than half of its business is from its Industrial Automation business.

This includes measurement and instrumentation products, particularly in the oil and gas sector, primarily consisting of control products, including DCS (distributed control systems) and safety systems.

ABB and Siemens – each a potential contender for IOM – are also leading suppliers in the DCS world, both being substantially bigger players. Meanwhile, General Electric is renowned for its industrial automation equipment business.

Brian Tinham

This material is protected by MA Business copyright
See Terms and Conditions.
One-off usage is permitted but bulk copying is not.
For multiple copies contact the sales team.