Menu
Posted November 28, 2017

Emerson withdraws offer to acquire Rockwell Automation

Emerson announced that it has withdrawn its proposal to acquire Rockwell Automation for $225 per share, citing unwillingness of the Rockwell board to engage in discussions about a potential combination.


“The Rockwell board again rejected our offer, which would have delivered approximately $30 billion of value to Rockwell shareholders,” said Emerson chairman and chief executive officer David N. Farr. “We are disappointed that the Rockwell board refused even to discuss the potential combination of our two great companies. Instead of engaging in constructive dialogue, the Rockwell board decided to let this unique and value-generative opportunity go unexplored.”

“We remain confident in the strategic plans we have in place, and in Emerson’s ability to create a global automation leader with a technology portfolio to meet evolving customer needs across process, hybrid and discrete product lines. Our company is in a great position – we have successfully repositioned our portfolio over the last two years, and have market-leading platforms in Automation Solutions and Commercial & Residential Solutions, both of which are performing well and have very attractive growth outlooks. Our future is bright, and we remain focused on accelerating core growth through new market penetration, technology innovation and strategic bolt-on acquisitions.”

The Rockwell board unanimously rejected Emerson's proposal submitted in mid-November.

“The Rockwell Automation board and management team are confident in the company, our strategic direction, and our ability to continue delivering exceptional shareowner returns and value creation in excess of Emerson’s proposal, particularly given the weakened position and dis-synergies that would result from combining our two organizations, and the risks associated with Emerson’s stock-based currency," said Blake D. Moret, president and chief executive officer.

“Bigger is not always better for driving growth and value creation. 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 does not. We have the talent, the technology, the culture and the resources necessary to continue raising the bar, exceeding our customers’ expectations and creating superior value for Rockwell Automation shareowners.”

SPONSORED ADS