Rockwell continues to say “No”
Emerson will not let go and presented an improved offer of USD 29 bn (EUR 24.7 bn) on 16th November to take over Rockwell Automation.
But this offer was also turned down unanimously. The executive board is convinced that this unsolicited offer again undervalues Rockwell Automation and moreover represents a long-term risk for its shareholders, since it is not well enough positioned in future after a takeover in a continually further developing market.
Rockwell is convinced that it will be easier to make extraordinary profits with its adopted strategy than by joining together with Emerson.
Blake D. Moret, Rockwell’s president and CEO, is even convinced that size is not better in every case for growth and value added. “Emerson might see this planned acquisition as necessary to improve its growth and earnings potential and expand its capabilities in the industrial automation and information market, Rockwell doesn’t.“ “We have the talent, the technology, the culture and the resources which are required to raise the bar, to exceed the expectations of our customers and create value added for Rockwell Automation shareholders.“
Competition in industrial automation is fierce and provides Emerson with competitors all over the world but mainly in Europe, including such major companies as ABB Automation, Schneider Electric from France and naturally also Siemens.