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Eaton, the US diversified industrial manufacturer, is to purchase the electrical division of Delta for £130 million. The transaction is currently under regulatory review and out for approval by Delta's shareholders.

In 2001 Delta's electrical division had sales of £229 million and generated earnings before interest, tax, depreciation and amortization of £20·7 million. Delta's electrical division has 3400 employees. Its brands, including MEM, Holec, Bill, Home Automation, Elek and Tabula will be integrated into Eaton's Industrial and Commercial Controls business.

The move will open up new markets for the $7.3 billion US giant. "The acquisition will greatly strengthen Eaton's ability to support our multinational customers in our electrical business," said Alexander Cutler, Eaton chair and CEO. "We will be adding well-recognised brands and distribution networks within key European and Asian markets."

Randy Carson, Eaton senior vice president, commented: "Delta's electrical division has a long-established customer base and a well-recognised product line in several important markets outside of North America. We look forward to adding the knowledge and experience of the people in Delta to Eaton's Industrial and Commercial Controls business."

A further announcement is expected following a meeting by Delta's shareholders at the end of January.

…while Schneider bounces back from Legrand fiasco to buy more
Following its ill-fated attempt to buy Legrand, Schneider Electric has come out fighting with plans to acquire companies with annual sales of 2 billion euro in the first quarter of 2003.

Henri Lachmann, chair of Schneider Electric, said: "The company has identified numerous targets and expects to complete acquisitions in the next 12 to 24 months." He also said that the company is planning to buy back an unspecified number of shares when market conditions are suitable.

Schneider has finally admitted defeat in its two-year attempt to acquire and keep hold of Legrand and sold it to a consortium which includes US firm Kohlberg Kravis Roberts and France's Wendel Investissement for 3.63 billion euro in cash.

After overturning a European Commission ruling that instructed Schneider to dispose of Legrand on the grounds of reduced competition, the company froze the sale. It then offered to sell businesses in France, most of which belong to Legrand, to solve monopoly problems.

However, these sales came into conflict with conditions agreed in the original deal – of only selling businesses with Legrand's approval – and Legrand's former owners secured a ruling in a French commercial court that Schneider should withdraw plans to sell French assets.

The cash is expected to be used to buy businesses in growth areas such as building automation and voice-data-image equipment. Schneider is also to sue the European Commission for more than one billion euro over the Legrand bid.