Swiss-Swedish industrial group ABB entered discussions to acquire French electrical equipment manufacturer Legrand, according to information confirmed by a source close to the matter. The move, which lasted nearly six months, was halted following two vetoes issued by the French Ministry of the Economy.
A failed bid on multiple fronts
According to the reported details, ABB first approached Legrand informally, without success. The Swiss group later sent a formal letter to the French company’s board of directors. This official approach was rejected “unanimously” by board members, according to a cited source. Meanwhile, Bercy expressed strong opposition to the transaction on two separate occasions, highlighting the strategic sensitivity of certain Legrand assets.
The growing role of data centres
Legrand’s operations in data centres appear to have been central to ABB’s interest. These facilities, essential for hosting and managing digital information, are a key growth driver for Legrand. In the first half of the year, the French group reported an 8.7% increase in net profit, reaching €628mn ($664mn). This performance was supported in part by rising demand for data centre equipment.
Political resistance to a control shift
The Ministry of the Economy reportedly viewed the acquisition as a potential loss of technological sovereignty, amid ongoing concerns over critical digital infrastructure. ABB’s chairman is said to have informed Economy Minister Eric Lombard at the end of July of the company’s decision to withdraw its acquisition offer.
Legrand, which employs 5,000 people in France, remains one of Europe’s leading electrical equipment providers. The group declined to comment on ABB’s offers or on the government’s intervention. ABB also refrained from making any public statement.
