Brussels, 03/12/2002 (Agence Europe) - The Schneider group announced on Tuesday that it was giving up its proposed merger with Legrand once and for all and was selling the shares of the latter to the Wendel group, in accordance with the agreement signed in July (see EUROPE of 30 July). We recall that the Court in Versailles last week ruled that Legrand was in the right concerning the fact that it had been injured by the project, and ordered Schneider to withdraw the proposals for the sale of assets concerning Legrand, which were the essential element of the concessions proposed by the Commission. A decision from the latter is expected for 5 December. As the Commission was moving towards the opening of a detailed investigation, Schneider preferred to validate the agreement concluded with Wendel rather than begin a long and risky procedure. In a press release, Schneider points out that this decision is the consequence, on one hand, of the position adopted by the European Commission services which, on 29 November 2002, considered that the correcting measures proposed by Schneider Electric did not allow them to approve the merger and, on the other hand, the hostility toward the merger of the two groups expressed by Legrand decision-makers. Schneider goes on to say that the solution of safeguarding Legrand involved authorisation from the European Commission. Indepth contacts with the Commission showed that the Commission's requirements with regard to investment are considered by Schneider to be out of proportion compared to the aim of maintaining a competitive situation on the French market.