ABB drops out of race for Chloride
Emerson Electric now favourite to takeover British firm
US firm ABB has dropped out of the race to takeover Chloride
after declaring it would not match the bid made by a rival
Emerson Electric made a £997 million offer for the British firm,
a bid which trumped ABB's previously agreed £860 million deal.
"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," ABB chief executive Joe Hogan said.
Chloride, which provides back-up power supply units to
businesses such as BT, confirmed that it will now enter
negotiations with Emerson.
Emerson is looking to break into the European market having
established itself as one of the leading industry suppliers in the
It has around 2,500 employees and recently reported end-of-year
revenue of £336 million.