Emerson proposed to acquire Rockwell Automation

(courtesy of Emerson)

(courtesy of Emerson)

Emerson announced that its Chairman and Chief Executive Officer, David N. Farr, has sent a letter to Rockwell Automation President and CEO, Blake D. Moret, proposing to acquire all outstanding shares of Rockwell for $225 per share, consisting of $135 per share in cash and $90 per share in Emerson shares. The total enterprise value of the transaction is approximately $29 billion.
The letter also explains that the portion of the consideration to be paid in Emerson stock would result in Rockwell shareholders owning approximately 22% of the combined company, allowing them to participate in the significant value creation from synergies generated by a combination.
The same letters tells that this acquisition would end up in the formation of a new leader in the $200-billion-worth global automation market.