(Bloomberg) -- Schneider Electric SE is weighing a sale of its industrial automation and control unit, which could be valued at about $1 billion, according to people familiar with the matter.

The French industrial conglomerate is working with an adviser to gauge interest from potential suitors for the Telemecanique business, the people said. An auction process is likely to draw both strategic and private equity buyers, the people said, asking not to be identified discussing confidential information.

Deliberations are ongoing and no final decisions have been taken, according to the people. A representative for Schneider declined to comment.

Telemecanique, which can trace its origins back to 1924, makes products including sensors, switches and signaling devices for the industrial, infrastructure and building sectors. It was purchased by Schneider in 1988. 

The potential sale forms part of Schneider Chairman and Chief Executive Officer Jean-Pascal Tricoire’s plan to offload non-core businesses and channel more investment into products that help companies with the shift to digitalization.

In the the past year, Schneider has sold energy data management firm IMServ to Blue Water Energy LLP and a cable support business to Storskogen Group AB. The value of industrials deals hit a record $868 billion globally in 2021, according to data compiled by Bloomberg.

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