Schneider Electric buys Britain's Aveva in reverse takeover

LONDON, July 20 (Reuters) - France's Schneider Electric (Swiss: SNE.SW - news) said it would combine its software unit with Britain's Aveva in a reverse takeover designed to create a global leader in industrial software.

Schneider said it would pay 550 million pounds ($858 million) towards the issue of new shares in Aveva, a company that designs shipping, industrial plants and nuclear power stations.

The French company will own 53.5 percent of the enlarged Aveva, which will remain listed in London, with its shares worth about 1.3 billion pounds at current market prices, the companies said.

The cash paid by Schneider will be paid to Aveva after the deal, which will see the former assets of Britain's Invensys, bought by Schneider two years ago, united with Aveva. ($1 = 0.6411 pounds) (Reporting by Paul Sandle; editing by Kate Holton)