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Emerson Electric drops $29B bid to acquire Rockwell Automation

Emerson Electric Co. said that it has discontinued its effort to acquire Rockwell Automation Inc. after the smaller rival rejected its buyout offer twice.

Emerson sweetened its bid to acquire Rockwell by offering $225 per share; $135 in cash and $90 in Emerson stock in a valuation amounting to $29 billion. However, Rockwell's board refused the deal, saying in a statement that it "undervalues Rockwell Automation and its prospects for continued growth and value creation."

"The Rockwell Board again rejected our offer, which would have delivered approximately $30 billion of value to Rockwell shareholders," Emerson Chairman and CEO David Farr said. "We are disappointed that the Rockwell Board refused even to discuss the potential combination of our two great companies. Instead of engaging in constructive dialogue, the Rockwell Board decided to let this unique and value-generative opportunity go unexplored."

Farr also said Emerson plans to accelerate the rate of share repurchases in the coming weeks and plans up to $1 billion in buybacks over the next 12 months.

Shares of Emerson rose 1% in pre-market trade while shares of Rockwell dropped 2%, CNBC reported.