Rocked Well

Rockwell-Emerson merger shot down multiple times

$27 billion is a whole heap of money, but it wasn’t sufficient enough for Emerson Electric to acquire Rockwell Automation. The Milwaukee-based automation equipment maker said Tuesday it had rejected an unsolicited acquisition bid from St. Louis-based Emerson, and it wasn’t the first offer.

Emerson has reportedly made multiple offers to buy Rockwell, according to CNBC. The most recent of these prior to this week was made on October 10, for approximately $215 per share in a half-cash, half-stock offer. Rockwell stated that both this offer and Tuesday’s upped ante both undervalued the company’s worth. An acquisition would create an industrial-automation conglomerate potentially capable of competing with the likes of Siemens, Schneider Electric, and ABB. The combination “would provide increased scaled and help expand industrial product and service offerings,” CFRA Research analyst Joe Agnese told Reuters.

Emerson also reportedly made a private offer to Rockwell, proposing a combination of the companies, adding that currently no discussions were ongoing between the two entities. Many financial experts believe the deal is unlikely to go through.

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