For years — at least since I’ve been on the automation beat here at Managing Automation (which is eight years now) — rumors have suggested Rockwell Automation as an acquisition target, perhaps by a close competitor, like GE Fanuc.

The mill began to churn again during the February timeframe, when ABB announced that then-CEO Fred Kindle was leaving the company due to irreconcilable differences. Rumors swirled that ABB, a process automation vendor with a pile of cash, was ready for a big takeover and Kindle wasn’t. The financial analyst community read between the lines and pointed a finger at Rockwell Automation.

Well, needless to say, ABB has yet to stun the industry with a big takeover bid. Yet, there’s still chatter about this, especially given ABB’s ongoing double-digit growth and Rockwell’s cautious economic attitude, which recently prompted it to restructure.

Still, I think it’s safe to say that it’s not happening.

There’s the obvious: Managing Automation recently quoted new ABB CEO Joe Hogan as saying that acquisitions are not a priority in this depressed market.

And this week at Rockwell Automation’s Automation Fair, I sat down with chairman and CEO Keith Nosbusch and asked him point-blank: “Did ABB make an acquisition offer to Rockwell? If so, is it under consideration?”

Keith responded in the politically correct protective manner, letting me know that he will not comment on acquisition rumors. But he followed that up by saying, “The greatest value to our shareholders is for us to remain an independent company.”

Of course, I had to clarify. “So, if ABB did approach you about an acquisition, you’re response was, and is, ‘No’?” To which I got a nod, and heard once again that there’s value in remaining an independent company.

So for now, rumor or not, any kind of deal is off the table, I assume. And, given the amount of time, effort, and money Rockwell is expending to build out its process business, why would they want to be gobbled up by this process giant?

Then again, if the market takes a complete nose dive and Rockwell isn’t firmly rooted in the only industries that are really growing (oil and gas, food and beverage, and energy and infrastructure), why wouldn’t they? Guess it’s all about how you measure “shareholder value.”

Never say never.

—Stephanie Neil, MA Senior Editor

Is Your Company Progressive?

Managing Automation is celebrating our 5th year of recognizing manufacturers that successfully use technology to transform their businesses. Nominate a project today for inclusion in our Progressive Manufacturing 100 Awards Program and get acknowledged for your business accomplishments. 

For more information, visit http://www.managingautomation.com/awards/aboutawards.aspx