Emerson raises bid for Rockwell Automation to $29bn

Rockwell Automation is once again considering a multi-billion-dollar takeover bid, with industry rival Emerson having upped its offer from $27.6bn to $29bn.

Rockwell Automation rejected Emerson’s initial acquisition offer some two weeks back, stating that the offer undervalued the company.

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“We remain convinced there is compelling strategic, operational, and financial merit to bringing together our two companies – and that such a combination would benefit our respective customers, employees and shareholders,” said David Farr, CEO of Emerson.

“The industrial logic for this combination is clear. A combination of Emerson and Rockwell would create a leader in the $200 billion global automation market.”

Rockwell’s shares were up 7%, trading at $202 before the offer was made. However, this remained well below the new offer price that would see Emerson purchasing the entirety of Rockwell’s shares at a price of $225 per share.

Further, the offer represents a 30% premium of Rockwell’s share price prior to any knowledge of Emerson’s proposed acquisition being revealed.

The proposal stands as a part-cash, part-share transaction, with shareholders expected to receive $135 in cash and $90 in Emerson shares per Rockwell share, should the offer be accepted.