French industrial group Schneider Electric has agreed a takeover of Aveva a UK engineering software developer, in a deal worth more than £3bn.

Shares in Aveva surged almost 25% in early trading on Tuesday 5th September, after the UK engineering group announced plans to merge with the software division of French giant Schneider Electric.

The deal, which will create a company worth approximately £3bn and will be completed by the end of 2017, is a case of third time lucky, as over the last three years Schneider has twice tried to merge with Aveva.

“I believe in this case, in the third period, things are different,” Jean-Pascal Tricoire, Schneider Electric’s CEO and Chairman told CNBC.

Schneider Electric is expected to take a 60 percent stake in the enlarged group’s stock under the terms of this deal, with the combination being classified a reverse takeover, the companies added. The enlarged Aveva Group stock is expected to remain listed on the London Stock Exchange.