VIENNA, July 2nd, 2004 — VA TECH Transmission & Distribution (VA TECH T&D), a subsidiary of the listed VA TECH, and Schneider Electric have announced today the transfer of the 40 percent stake in the high-voltage joint venture held by Schneider Electric to VA TECH T&D.
In October 2000, VA TECH T&D and Schneider Electric signed a cooperation agreement through which each company contributed their high voltage equipment business as of Jan. 1, 2001, to a jointly owned company, VA TECH Schneider High Voltage. VA TECH T&D and Schneider Electric respectively owned a 60 percent and 40 percent equity stake in the joint venture managed by VA TECH T&D. The contract included an option for VA TECH to acquire the 40 percent share from Schneider.
VA TECH T&D has now exercised this option to strengthen its core business in the high-voltage switchgear sector.
“The purchase of the 40 percent share from the joint venture is a further step within the course of our corporate strategy to become one of the leading experts in transmission and distribution”, says Klaus Brenner, chairman of VA TECH T&D’s managing board and member of VA TECH’s managing board.
In 2003, the joint venture achieved sales amounting to EUR 620 million with 2,600 employees. Neither company disclosed the purchase price of this acquisition.