Emerson Takes Over Chloride Group for $1.5 Billion

Technology company seeks to elevate its presence in European backup power market.

British power systems group Chloride announced that it was recommending shareholders to accept a $1.5 billion takeover bid from U.S. industrial technology company Emerson.

The purchase came after Emerson had fended off its rival ABB Ltd.s bid for Britains largest manufacturer of backup power equipment.

Just days before, Emerson raised its offer to 375 pence a share, or 997 million pounds, from an earlier proposal of 275 pence, trumping ABBs best offer.

Chloride Chairman Norman Broadhurst, who had twice before turned down bids from Emerson, finally said it was in the best interests of the company, and its shareholders, to accept the offer.

Chloride and Emerson will represent a powerful combination in the global secure power market, Chloride Chief Executive Officer Tim Cobbold said in the statement.

Copyright Agence France-Presse, 2010

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