Emerson Electric Co. (NYSE: EMR) announced on Tuesday that it has withdrawn its bid for Rockwell Automation (NYSE: ROK) that was valued you at $29 billion. Emerson offered a proposal to Rockwell on November 16.
Emerson offered $225 per share, consisting of $135 per share in cash and $90 per share in Emerson shares, totaling the offer at approximately $29 billion.
Emerson CEO, David Farr, said that Rockwell’s executive board rejected Emerson’s offer again. Emerson initially made an offer for $200 a share in August, then raised its offer to $215 and then again to $225.
“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.” said Farr.
Even without the merger, Farr says he’s confident in Emerson’s ability to position itself as a global automation leader. Previously, it was mentioned that the merger could potentially create a $200 billion global automation market.
“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. Our future is bright, and we remain focused on accelerating core growth through new market penetration, technology innovation and strategic bolt-on acquisitions.” added Farr.
Rockwell said that Emerson’s multiple offers undervalues the company and the merger would only hurt the company’s customers because products will be across two different platforms.