Emerson to look to bolt-on acquisitions after Rockwell bids were rejected

Automated manufacturing giant Emerson has announced that it has withdrawn from its proposal to buy Rockwell Automation, having failed to secure merger discussions with the Rockwell Board of Directors.

“The Rockwell Board again rejected our offer, which would have delivered approximately $30bn of value to Rockwell shareholders,” said Emerson Chairman and Chief Executive Officer David Farr.

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“We are disappointed that the Rockwell Board refused even to discuss the potential combination of our two great companies. Instead of engaging in constructive dialogue, the Rockwell Board decided to let this unique and value-generative opportunity go unexplored.”

As a result, Emerson will now look to alternative strategic plans that include the acceleration of share repurchases, expecting to buy back up to $1bn within the next 12 months, in addition to purchasing a number of “bolt-on acquisitions”.

“Our Company is in a great position – we have successfully repositioned our portfolio over the last two years, and have market-leading platforms in Automation Solutions and Commercial & Residential Solutions, both of which are performing well and have very attractive growth outlooks,” Farr continued.

“Our future is bright, and we remain focused on accelerating core growth through new market penetration, technology innovation and strategic bolt-on acquisitions.”

Since it first became known that Emerson was looking to acquire Rockwell Automation on 31 October, Rockwell’s shares have risen 2.2%, whilst Emerson’s have dropped 8.1%.