Aveva Group’s stock soars on news of possible Schneider takeover
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Aveva Group’s stock soars on news of possible Schneider takeover

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The shares of Aveva Group were the highest gainers on FTSE 100 Index on Wednesday, following the announcement of the takeover by its partner Schneider.

The shares of the UK-based IT technology company Aveva Group (GB:AVV) skyrocketed and were trading up by almost 28% in the wake of news that the company’s French partner, Schneider Electric (GB:0NWV) is interested in buying the remaining share capital in Aveva.

Schneider Electric, a digital automation and energy technology company based in France, already owns around a 60% stake in Aveva. Schneider believes that the complete buyout will help it achieve much faster growth.

Both the companies are yet to seal the deal, and Schneider has until September 21 to make an offer.

Schneider acquired a majority stake in Aveva in 2017 for £3 billion after pursuing it for two years. Aveva’s shares have grown since this acquisition, and the investors are expecting a much better deal this time.

Aveva’s stock has been on a shaky ride since last year, and the news came as a relief to shareholders. The shares are trading down by 31.7% in the last year.

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What does AVEVA Group do?

Aveva Group is a UK-based multinational company that provides technology solutions to the manufacturing, infrastructure, transportation, and energy sectors.

The company’s services include cloud solutions, engineering solutions, data management and operations, digital transformation, and more.

Aveva’s share price forecast

According to TipRanks’ analyst rating consensus, Aveva Group stock is a Moderate Buy. This is based on seven ratings, including three Buy, three Hold, and one Sell recommendation.

The AVV price target is 2,665.7p, which shows a -4.35% of change from the current price level.  The analyst price target has a low forecast of 2,000p and a high forecast of 3,625p.

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The combination of both Schneider and Aveva’s technologies has worked well for both companies. Investors are now waiting for further announcements on the new deal.



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