Emerson Electric offers $29 billion for Rockwell Automation

Emerson Electric (NYSE: EMR) offered to acquire Rockwell Automation (NYSE: ROK) for $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 says the possible acquisition of Rockwell will position itself as a global automation company with the best-in-class portfolio of automation solutions.

Blake D. Moret, Emerson President and CEO, said that a merger of the two will create a $200 billion global automation market.

“We remain convinced there is compelling strategic, operational, and financial merit to bringing together our two companies – and that such a combination would benefit our respective customers, employees and shareholders.” said Moret,

Moret says that the two together will generate approximately $23 billion in annual revenue. He expects EPS and free cash flow to increase within the first year, forecasting a 20 percent operating margin growth as well as double-digit EPS growth.

“The combination of Emerson and Rockwell would accelerate our combined growth and position us for success for many years to come.”

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