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Electronics Production |

Rockwell says 'no thanks' to Emerson's offer

Rockwell Automation has rejected Emerson’s unsolicited proposal to acquire Rockwell Automation which the company received on November 16, 2017.

Board of directors of Rockwell Automation – in consultation with its financial and legal advisors – has considered proposal and unanimously determined that it is not in the best interests the company’s shareowners. According to a press release from Rockwell, the board feels that the proposal undervalues the company and its prospects for continued growth. Blake D. Moret, president and chief executive officer, said, “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. In its offer, Emerson proposed to acquire all outstanding shares of Rockwell for USD 225 per share, consisting of USD 135 per share in cash and USD 90 per share in Emerson shares. The total enterprise value of the transaction is approximately USD 29 billion. “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,” Blake D. Moret continues.

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March 15 2024 2:25 pm V22.4.5-1
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