After Emerson Electric’s previous bid of USD 27.6 billion to buy Rockwell Automation was made public last month, the merging attempt continues. Emerson has increased their offer to roughly USD 29 billion saying that they’ve initially ‘undervalued’ the company according to REUTERS. While this is a surprising amount to behold, there’s still no telling which way the deal will go.
Rockwell Automation had previously rejected the offer valued at USD 215 per share last October, USD 15 above their initial offer last August. Their defense was that their strategy was to operate as a standalone company. Now, the bid is valued at USD 235 per share, USD 135 cash and USD 90 in Emerson shares.
Currently, Rockwell’s shares’ value rose 7 percent at USD 202 per share which is still way below the offer price. Emerson, on the other hand has gone down 2 percent, at USD 58.50 per share.
According to CNBC, Emerson executive David Farr stated that “We remain convinced there is compelling strategic, operational, and financial merit to bringing together our two companies.” The merging of the two companies would create a synergy worth at least USD 6 billion, he added.
This has been their 3rd offer to date in the past 3 months and Emerson does not show any hints of backing down. As of the moment, Rockwell still has no response on the matter.