French electrical gear manufacturer Schneider Electric announced its GBP 3.4 billion  or USD 5.2 billion acquisition of UK-based Invensys Plc. This will be Schneider's biggest purchase ever since it took over American Power Conversion Corp. That 2006 deal was worth USD 6.1 billion. A Bloomberg report states that its acquisition of Invensys is "to add software and control systems used by chemicals makers, oil refineries, and mining companies."

In a statement, Schneider Electric's Chief Executive Officer Jean-Pascal Tricoire said the purchase will serve to strengthen his company. "The addition of Invensys' businesses will considerably strengthen Schneider Electric's overall offering to its industrial and infrastructure customer base," he said.

Schneider Electric also said that the cost savings resulting from the purchase will be EUR 140 million by 2016. In addition, it also estimated that over the first five years, it will save EUR 80 million in annual taxes. Standard & Poor's, however, said that as Schneider will fund a portion of the buy by taking on more debt, it might cut its current A-credit rating.