Emerson Electric-Platinum Equity deal receives CCI nod

The Dollar Business Bureau

The Competition Commission of India (CCI) has approved the proposed acquisition of Emerson Electric's Network Power business by Platinum Equity and a group of co- investors. 

With the deal valued at $4 billion, Emerson would retain a subordinated interest in Network Power business. The transaction agreement is structured as a stock and asset purchase pact. 

The St. Louis-based company in August announced the sale of its two assets for $5.2 billion. The remaining $1.2 billion will be invested by Japan’s Nidec Corp. for two businesses that produce alternators, drivers and motors.

Emerson took this decision to overhaul its business, as it now looks to concentrate on industrial automation and consumer products.

Emerson’s disappointing earnings growth in June last year led it to decide on unloading the underperforming businesses.

A part of the restructuring of its business, the company will undertake a cost-cutting program to save over $400 million a year.

Emerson designs, manufactures and services critical infrastructure technologies for applications in large data centres, major communication networks and critical industrial environments. Emerson provides solutions for customers in commercial, consumer and industrial markets. 

Platinum assists companies with merger, acquisition and operation of companies that give services to customers in across various business segments.