Emerson Beats ABB in Chloride Takeover Battle

Emerson Electric has finally prevailed in battle to buy Chloride Group, the UK based supplier of backup power systems, after raising its offer price to 375 pence a share, (997 million pounds), a significant increase on its initial proposal of 275 pence back in April. Zurich-based ABB, which had bid 325 pence a share, relinquished its right to match Emerson’s oflfer.

"While we still see considerable value in the combination of ABB and Chloride and have a high regard for the Chloride management team, we must take a disciplined approach when assessing potential acquisitions,” said Joe Hogan, ABB’s CEO.

Chloride chairman Norman Broadhurst, who had previously spurned two prior approaches from Emerson, said it would be in the best interests of shareholders to recommend the latest offer from the St. Louis-based company. Before the first bid was announced, shares in the company were trading just above 200 pence.

In a statement, Emerson president, chief executive and chairman David Farr said: "We welcome the decision of the Chloride board to recommend our offer to their shareholders. This combination of Emerson and Chloride will create a global competitor ideally positioned to deliver a wide range of products, services and solutions to our customers all around the world."

The Emerson Network Power division supplies power backup systems, embedded power, precision cooling, and connectivity technologies for data centers, telecommunications networks, and other applications.

“Chloride and Emerson will represent a powerful combination in the global secure power market,” commented Chloride chief executive officer Tim Cobbold.