THE former owners of Westinghouse Signalling in Chippenham are to be bought by a French firm for £3.4 billion, so long as shareholders vote in favour of the deal.

Invensys is set to become part of Schneider Electric, but there are warnings that some jobs could be lost as the merger proceeds, because Schneider is planning to save some £122 million a year.

Schneider has 140,000 staff around the world, and Invenys currently employs 16,000, including 1,100 in Britain at sites in Crawley and Worthing.

Invensys chairman Sir Nigel Rudd said there was a 'strong strategic fit' between companies, and told shareholders that the purchase price, which consists of cash and shares, offered a 'very attractive outcome'.

Schneider chairman and chief executive of Jean-Pascal Tricoire hailed an 'exciting day'. He added: "We warmly welcome Invensys's team and believe that the combined business will provide new and larger growth opportunities for employees and customers."