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Blackstone Eyes Emerson Electric's Commercial & Residential Solutions Assets: Report

Benzinga Real-time News ·  Oct 5, 2022 07:14
  • Emerson Electric Co (NYSE:EMR) is in talks with Blackstone Inc (NYSE:BX) to divest a part of its commercial and residential solutions business.
  • The deal could be valued between $5 billion and $10 billion, but the talks are not conclusive, Bloomberg reported.
  • The move comes after a COVID-19 pandemic fueled a housing boom in the U.S., which saw home prices skyrocket. The recent inflationary environment, along with rising interest rates, had begun to cool down the sector.
  • Tightening credit markets and slowing economic growth keep away many takeover deals as companies have become averse to risk.
  • Earlier in 2022, Emerson merged its industrial software business with Aspen Technology Inc (NASDAQ:AZPN).
  • In August, the company sold its InSinkErator business to Whirlpool Corp (NYSE:WHR) for $3 billion.
  • Emerson reported a 7% rise in Q3 revenue to $5 billion.
  • Price Action: EMR shares are trading higher by 2.24% at $80.00 in premarket on the last check Wednesday.
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