Schneider Electric has sold its 40% ownership in the electric power transmission and distribution systems giant VA TECH Transmission & Distribution (VA TECH T&D) back to the company it started the joint venture with.
Schneider says that the sale is part of its strategy to focus on its core business.
In October 2000, Schneider Electric and VA TECH T&D signed a cooperation agreement through which each company contributed their high voltage equipment business as of January 1, 2001 to a jointly owned company.
Schneider Electric and VA TECH T&D respectively owned a 40% and 60% equity stake in the joint-venture managed by VA TECH.
The joint-venture currently ranks third worldwide in the high voltage equipment industry with sales of 620 million Euros and 2,600 employees in 2003.
In March this year, Schneider went on the acquisition trail, buying CA-based Kavlico Corporation, a player in the sensing technology market with sales of $156 million in 2003, as well as Wangao, a private Chinese company that develops and manufactures automatic power transfer switches.