Emerson Proposes Buy of U.K.'s Chloride
ST. LOUIS (
) --
Emerson Electric
(EMR) - Get Emerson Electric Co. Report
said it made an indicative proposal on Friday to acquire the U.K.'s
Chloride Group
.
Emerson said it asked for a response from the board of Chloride by Sunday but no response has been received.
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Emerson said is proposing an all-cash offer for Chloride of 275 pence a share, or about 723 million pounds ($1.1 billion).
Emerson said it believes that a combination with Chloride, which makes power protection equipment, would solidify its position in Europe. It intends for Chloride to serve as Emerson's European Network Power Systems headquarters and expects to add jobs in the U.K.
"Chloride is a good business with a solid management team. But in a market where scale is becoming increasingly important, we believe that Chloride will be better able to compete long-term with the benefit of the strength and resources of Emerson," said David Farr, Emerson president and CEO.
Emerson said it held discussions with Chloride over a merger in 2008, but the talks became " prematurely public and never achieved any meaningful level of engagement or consideration."
-- Reported by Joseph Woelfel in New York.
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