Schneider Electric plans to buy Temasek's 35 percent stake in their Indian joint venture.

The €5.5 billion ($6.4bn) all-cash deal will give the French electrical equipment maker full ownership of the regional division. The transaction, subject to customary closing conditions, was first rumored earlier this month, but at the time, it was believed to be only worth $1bn.

The joint venture was formed in 2020, when Schneider merged its local low voltage and industrial automation product unit with Larsen & Toubro Ltd.’s electrical and automation operations.

“We are pleased to announce this transaction, and I would like to thank Temasek for their partnership that was instrumental to the success of Schneider Electric India Private Limited since the original acquisition of L&T E&A," Schneider Electric CEO Olivier Blum said.

"India is one of the key focus markets of Schneider Electric for the years to come and I am very excited by the prospect to capture the full growth potential of this unique opportunity we have in the country and also to leverage our exceptional talents in R&D, digital and supply-chain in India to support our operations in the region and beyond."

This April, Schneider's CFO Hilary Maxson said that the company "continued to see strong double-digit demand" for data centers, and pointed to India as a rapidly growing market. The country accounts for around seven percent of its total group revenue.