Schneider Electric has finally given up hope of taking over its rival Legrand, opting instead to sell its stake to Kohlberg Kravis Roberts (KKR) and Wendel Investissements in what will be continental Europe's largest ever buy-out.

The buy-out partners will pay Schneider €3.6bn ($3.6bn) in cash and take over debt worth €1.5bn, giving a total deal size of €5.1bn. In Europe, this is second only to the buy-out of MEPC, a UK property company, for £3.5bn (€5.5bn).