LONDON-LISTED software developer Aveva is closing in on a deal that would see it fully taken over by French industrial giant Schneider Electric.

The two companies are in discussions for Schneider to acquire the roughly 40 per cent stake in Aveva that it does not already own, at a price of £30 a share, Sky News first reported last night.

The 40 per cent stake in the Cambridge software company is set to cost Schneider around £3.5bn.

The firms are seeking to close the deal ahead of a 21st September deadline imposed by the UK's takeover watchdog.

Schneider previously acquired a controlling 60 per cent stake in Aveva in 2017 in a deal worth £3bn, in its third bid to take over the firm since 2015.

Shares in Aveva have doubled in price since then meaning Schneider will be forced to pay substantially more for the remaining stake in the FTSE 100 company.

Bankers at Citi are advising Schneider.

(c) 2022 City A.M., source Newspaper