AVEVA Group PLC surged 30% after it was confirmed French company Schneider Electric was considering buying out the software firm.
Schneider, an automation and energy management firm, already owns a 60% stake in AVEVA after the two merged five years ago in a deal worth £3bn.
In a statement issued today, Schneider said it was “considering a possible offer for the entire issued and to be issued, share capital of the capital,” that it does not currently own.
The group said it has until 5pm on 21 September to make an announcement as to whether it will look to pursue a deal.
Additionally, the group said it remains committed to AVEVA, its business model and its employees, regardless of whether an offer is made.
Schneider “believes that a full combination of AVEVA and the software business of Schneider Electric will reinforce AVEVA, and enable it to execute its growth strategy faster.”
The French group combined its industrial software business with Aveva in 2019, with the deal precluding it from increasing its stake for another two years.
The relationship has not also been easy with Aveva chief executive Craig Hayman abruptly departing in April 2021 and Peter Herweck from Schneider taking over.
Aveva shares have also been volatile since the merger hitting 4,100p a year ago but sliding to 2,300p before today's approach after it posted a loss in its latest fiscal year.
In a statement, Schneider said: 'The UK is one of Schneider Electric's most important and strategic markets.
'Its UK business has a sizeable footprint, with around 4,000 employees in multiple functions, including manufacturing, R&D, sales and service at 14 sites across the country.
"The group is committed to continued investment and development of unique, innovative solutions for digital transformation, sustainability and energy transition for communities across the UK and around the world.'
Shares in Aveva rose 29% to 2,830p