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.
“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.