Rockwell Automation said Tuesday its board of directors had rejected an unsolicited takeover bid from Emerson Electric. The offer, worth more than $27 billion, was for $215 a share and split evenly between cash and stock.
The company has rejected several offers from the Ferguson-based multinational, according to a report from CNBC. This includes a previous offer in August that valued Rockwell at $200 per share, which was also split in cash and stock.
Rockwell shares gained 7.4 percent to close at $200.82 on Tuesday.
Rockwell said its Board of Directors had “carefully reviewed these proposals.” In a statement yesterday, Rockwell said it had “unanimously determined that each of Emerson's proposals was not in the best interest of Rockwell Automation or its shareowners.”
“The Rockwell Automation Board of Directors and management team are committed to serving the best interests of the Company and Rockwell Automation shareowners, and are confident in the Company's strategic direction and our ability to continue delivering superior levels of growth and value creation,” said Blake D. Moret, president and chief executive officer.
Emerson confirmed the bid in their own press release. It said Emerson had “made a private offer to Rockwell Automation proposing a combination of the two companies. The proposal was rejected by Rockwell Automation and no discussions are currently ongoing between the two companies.”
Emerson has made a number of acquisitions this year. It acquired Paradigm, an oil and gas software company based in Houston, in October for $510 million. In a further effort to expand its technological capabilities, the company is now eyeing Rockwell’s industrial automation and IoT expertise.
The Global Industrial Automation Market is estimated to reach $ 64.46 billion by 2022, according to a new report. It says the need for operational efficiency, growing inclination towards the Internet of Things(IoT) and cloud-based automation, increasing R&D and innovation in Artificial intelligence and advancements in M2M communication technology are some of the key growth factors of this industry.
Stay up-to-date with the latest trending news stories and industry advances with the Research and Markets blog. Don’t forget to connect with us on LinkedIn and Twitter for the latest blog plus information about new products.