AVV Aveva Group Plc

LONDON--Engineering software provider AVEVA Group PLC (AVV.LN) said Tuesday that it is working with Schneider Electric SE (SU.FR) towards finalizing due diligence and reaching definitive terms.

In July Schneider said it plans to take a controlling stake in AVEVA in a transaction that includes a 550 million pound ($858 million) cash injection into AVEVA.

The two companies reached a non-binding agreement in which AVEVA will acquire software assets from Schneider and receive the cash injection from the French company in exchange for Schneider taking a 53.5% stake in the U.K. company. The stake is valued at GBP1.3 billion at current market prices.

AVEVA said Tuesday that based on the current timetable, both parties are working towards finalizing due diligence and reaching definitive terms in December, with completion expected to occur by mid-2016.

There can be no certainty that the discussions between AVEVA and Schneider Electric will lead to a transaction, nor what the final terms or timing of any such transaction may be, it added.

--Inti Landauro contributed to this article

-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

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(END) Dow Jones Newswires

November 10, 2015 03:30 ET (08:30 GMT)

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