Emerson Electric withdraws takeover bid for Rockwell Automation
29 November 2017
US-based industrial-automation systems maker Emerson Electric Co yesterday withdrerw its takeover bid for Rockwell Automation Inc after the Milwaukee-based company rejected its latest sweetened buyout offer.
In August, Rockwell had turned down an Emerson bid of $200 per share and again rejected in October offer from Emerson's for $215 per share, or $27.6 billion.
This month, Rockwell once again rejected Emerson's revised offer of $135 per share in cash and $90 per share in Emerson stock for a total of $225 per share or $28.91 billion (See: Rockwell Automation rejects Emerson's sweetened $29 bn bid).
While rejecting Emerson's latest offer, Rockwell CEO Blake Moret said that the proposal was not in the best interests of the company or its shareholders.
"While Emerson may see this proposed acquisition as necessary to enhance its growth and earnings potential and expand its capabilities in the industrial automation and information market, Rockwell Automation does not."
Expressing disappointment over Rockwell's rejection, Emerson chairman and CEO David Farr said, ''Instead of engaging in constructive dialogue, the Rockwell Board decided to let this unique and value-generative opportunity go unexplored.''
''The Rockwell Board again rejected our offer, which would have delivered approximately $30 billion of value to Rockwell shareholders,'' he added.
He went on to add that the company will remain focused on accelerating core growth through new market penetration, technology innovation and strategic bolt-on acquisitions.
Emerson also plans to accelerate share repurchases over the next month and buy back up to $1 billion over the next 12 months.
Founded in 1890, Missouri-based Emerson Electric is a Fortune 500 company that manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.
It has around 103,500 employees, 205 manufacturing locations worldwide, market cap of 44.7 billion and annual turnover of around $15.2 billion.