When it comes to the Industrial Internet the critical path to success is often is at the PLC or industrial Controls.
Emerson has taken Digital Transformation to heart and per the website
Has boldly transformed itself to create value for our customers and shareholders. With our newly energized focus on our two core business platforms — Automation Solutions and Commercial & Residential Solutions — we can confront the challenges of an increasingly complex and unpredictable marketplace from a position of strength. This allows us to drive both near- and long-term value. And retain our single-trusted-partner status with the process, industrial, commercial and residential industries.
It also means that they have been aggressive in addressing market needs with acquiring solutions that match the opportunities. For example they acquired LocusTraxx and PakSense when they wanted to enhance their solutions for Food Management and Cold Chain.
Rockwell Automation has a tremendous legacy and history that they are proud of including “The Company’s first patented product was a carbon disc compression-type motor controller for industrial cranes. The crane controller was demonstrated at the St. Louis World’s Fair in 1904.” 1
Additionally the company has a benevolent history starting the charity that eventually became the United Way.
And they see themselves as Market Leaders per their website…
Rockwell Automation, the world’s largest company dedicated to industrial automation and information, makes its customers more productive and the world more sustainable. Throughout the world, our flagship Allen-Bradley® and Rockwell Software® product brands are recognized for innovation and excellence.
Now logically Emerson’s ovation makes sense. Emerson has a market cap of almost $38B while Rockwell is at $25B. However the stockholders of Rockwell see their shares in the near $200 while Emerson is very stable near $60 the shareholders might have some trepidation.
However on principle this would be a very strong merger with lots of opportunities to expand services their clientele. IMHO, Looking at both companies are strong but not analogous in industrial controls with Emerson having more process material handling abilities and Rockwell having more industrial controllers.
I can understand why Rockwell Automation wants to stand alone, but as IIOT continues to heat up, both companies are capable of adapting to the digital transformation and would do well in maintaining their market share. However together they could increase their opportunities in a variety of vertical markets.