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- Emerson Electric tried to buy Rockwell Automation in October in a deal worth about $27.5 billion. Rockwell rejected the offer, a report said before both companies confirmed they had been in merger talks. No discussions are ongoing, according to Emerson.
Rockwell Automation confirmed Tuesday that it rejected an unsolicited purchase offer from Emerson Electric.
The industrial-automation company’s board on October 10 turned down the offer for $107.50 per share in cash and 225 million shares of Emerson common stock, it said in a statement. The deal would have been worth about $27.5 billion.
Emerson separately confirmed that it made a private offer for a merger, and no discussions are ongoing.
“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 Moret, Rockwell’s CEO, in a statement.
CNBC’s David Faber first reported that Emerson made multiple offers for the industrial-automation company. Emerson has looked to consolidate in the industry for companies that make factories run more efficiently, the report said.
Trading in Rockwell Automation and Emerson shares was halted for news pending after Rockwell spiked 10% on the news. Rockwell pared gains upon the resumption of trading, while Emerson was down about 2%.