Schneider Electric has begun a process to fully acquire MGE UPS Systems for an estimated enterprise value of about EUR 850 million (U.S. $1 billion). The transaction should be complete in the first quarter of 2004, pending approval by anti-trust authorities, notably in the U.S. and Europe.

Schneider Electric signed two agreements under which it will increase its stake in two stages. The first of which is the acquisition of a 52.6% interest, which corresponds to all of the stake held by legal and general ventures and ABN Amro and about half of the interest held by MGE UPS Systems’ management and employees, for EUR 298 million (U.S. $375 million). The second stage is the acquisition in 2006 of the remaining 15.1% for a price based on MGE UPS Systems’ 2005 EBITA level.