ABB plans to integrate the business as a standalone division within its existing automation portfolio. Executives at the Swiss group confirmed they intend to maintain Rotork’s current U.K. footprint, a move aimed at bolstering their presence in the oil-and-gas, chemical, and water-and-power markets. Rotork’s board of directors has already signaled unanimous support for the transaction, advising shareholders to accept the offer.
In section Market Quotes
Rotork Reaches Record Valuation Following ABB Takeover Bid
Investors pushed Rotork shares to an all-time high of 485.40 pence on Thursday, reacting to a 4.14 billion-pound ($5.6 billion) acquisition offer from Swiss industrial giant ABB. The proposed cash deal represents a 73% premium over the U.K. automation company’s previous closing price, signaling a major consolidation in the sector.
Market response favored the target, with Rotork shares climbing 67% during early European trading. Conversely, ABB shares slipped 2.9% to 80.74 Swiss francs. Analysts at RBC Capital Markets characterized the acquisition as a strategic expansion, noting that the purchase secures a high-quality asset capable of deepening ABB's influence across critical industrial sectors.
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