Rockwell Automation Inc. has rejected an unsolicited takeover bid from Emerson Electric, the company said Tuesday, adding that the offer was not in Rockwell’s interest. 

The Milwaukee-based industrial automation company confirmed that it received two offers from St. Louis-based Emerson.

Earlier this month Emerson offered $215 per share in cash and stock, or roughly $27.61 billion. In August it made a bid of $200 per share. 

Emerson said talks between the companies are off.

In a statement, Rockwell said: “The Rockwell Automation Board of Directors unanimously determined that each of Emerson’s proposals was not in the best interest of Rockwell Automation or its shareowners.”

It’s not surprising that Emerson would have wanted Rockwell, said badyst Richard Eastman with Milwaukee-based Robert W. Baird & Co. Inc.

“I think what Rockwell is doing, strategically and operationally, has been very good for shareholders and for Rockwell itself if you look at market share and technology leadership,” Eastman said. 

Rockwell didn’t stand to benefit from the deal, according to Eastman. 

“I guess I would just step back and say if Emerson were to purchase Rockwell, what would Emerson bring to the table to help Rockwell grow their business? I don’t see any value enhancement by partnering up or being bought by Emerson,” Eastman said. 

 

 

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