Two French firms Alstom and Schneider Electric have jointly bid for acquiring transmission and distribution business of Paris-based Areva for an equity value of euro 2,290 million (about Rs 16,000 crore).
The Indian operations of Areva T&D (India) are also part of the global power equipment firm Areva.
"Schneider Electric and Alstom are satisfied with the decision of Areva to retain their offer for exclusive negotiations," Alstom said in a statement released globally.
The aim of these negotiations is to finalise the disposal agreement, which would ultimately need the approval of various authorities and the view of employee representatives.
"The two partners restate that they propose a project which maximises the value of the company and creates a coherent framework to develop Areva T&D's activities, supported by strong commitments to Areva T&D's employees," it added.
As per the agreement, transmission business would move to Alstom while the distribution business would be retained by Schneider Electric.
Alstom and Schneider Electric are opening up possibilities for industrial, commercial and technological synergies which, up until now, have not been available to Areva T&D.
After the closing of the transaction, Schneider Electric and Alstom plan to acquire the shares of Areva T&D through a joint legal vehicle, from which the activities will then be progressively transferred to Schneider Electric and Alstom, it said.
In July, Areva's supervisory board asked the executive board to put Areva T&D's up for sale to part finance the group's long-term development plan.
Areva T&D India, is engaged in manufacturing equipment for the power transmission and distribution companies.
