SGB negotiating merger with Schneider Electric transformer unit
Germany’s transformer manufacturer SGB-SMIT is in talks to merge with the power transformer unit of French electrical equipment producer Schneider Electric, reports Reuters.
According to Reuters’ sources, talks are at an advanced stage and if any deal was made, Schneider would take a minority stake in SGB-SMIT, which is owned by private equity group BC Partners since 2008.
BC Partners reportedly also continues to explore a sale of the business, and last year hired Goldman Sachs to find a possible buyer, hoping to obtain 700 million euros ($746 million).
In case of a merger with Schneider’s power transformer business, BC Partners would remain invested in SGB-SMIT but would pull out at a later stage.
Reuters reports that BC Partners, Schneider and Goldman Sachs all declined to comment.