May 2, 2017

Emerson’s acquisition of Pentair’s valve business gets conditional federal approval

The Apex Building, headquarters of the Federal Trade Commission, on Constitution Avenue and 7th Streets in Washington, D.C..
The Apex Building, headquarters of the Federal Trade Commission, on Constitution Avenue and 7th Streets in Washington, D.C..

The US Federal Trade Commission (FTC) has approved Emerson Electric Company’s acquisition of the Switzerland based valves and controls arm of British industrial valve manufacturer Pentair. Conditions have been placed on the deal however, to avoid violations of federal antitrust laws.

Both Emerson and Pentair manufacture industrial valves and control products, including switchboxes, which are commonly used in the chemical, oil and gas, petrochemical and power industries.

The FTC charges that the proposed $3.15 billion (€2.9 billion) acquisition would merge the leading switchbox manufacturers in the US, which combined control around 60% of the market. Therefore, as a key condition of the deal, Emerson has to sell Pentair’s switchbox business to Stamford, Connecticut’s Crane Company. The terms of the consent agreement state that ten days after securing the acquisition of Pentair, Emerson must divest Westlock Controls Corp, the subsidiary of Pentair which designs, manufactures and sells switchboxes to Crane.

Emerson is required to provide Crane all of Westlock’s production facilities, intellectual property and confidential business information, as well as the option to hire Westlock employees.

The FTC imposed the condition on the deal out of concerns over competition in the switchbox market. “Switchboxes perform a critical safety function, so brand reputation and product reliability are very important to customers. Emerson’s TopWorx and Pentair’s Westlock switchboxes are the most widely-used brands nationwide and, for many customers, the only acceptable brands of switchboxes” The FTC said in a statement.

“Because of the time and investment required to develop switchboxes along with the time required to build a sufficient reputation with customers for quality and reliability, current and future competitors in the switchbox market are unlikely to restore the loss of competition caused by the acquisition, the complaint alleges.

Based in Schaffhausen, Switzerland, Pentair Valves and Controls generates annual revenue of $1.84 billion and employs close to 7,500 people across the globe.

The Apex Building, headquarters of the Federal Trade Commission, on Constitution Avenue and 7th Streets in Washington, D.C..






June 23, 2017
New Way Air Bearings has announced it is now offering 'Bently balance bearings’, externally pressurised air bearings for non-contact support of rotors during balancing operations. The new air bearings... [Read More]

June 23, 2017
The BM25 and BM25 wireless area gas monitor from Tyco Gas & Flame Detection have been approved per governmental regulation n°179-2010, and received certification N°15.0200 X. Tyco’s... [Read More]

June 22, 2017
Emerson has announced a new dual-mode wireless gateway which supports both IEC 62951 WirelessHART and ISA100.11a industrial wireless communications standards. Expanding Emerson’s wireless portfolio,... [Read More]

June 22, 2017
Gardner Denver Holdings has completed the acquisition of LeROI Compressors, a move which the company hopes will provide further access to the gas compression and vapour recovery market. A global provider... [Read More]

June 21, 2017
A new report from the Bank of Scotland paints a picture of cautious optimism for the oil and gas industry, with signs that many companies are ‘gearing up’ for growth. Key findings of the new... [Read More]

June 20, 2017
Lloyd’s Register (LR), an international provider of engineering and technology-centric professional services, has won a major new contract which will see the company implement a fully integrated... [Read More]

June 20, 2017
Blacoh Fluid Control has announced the release of the ‘world’s first’ combination pulsation dampener and back pressure valve, which it has named the Hybrid Valve. The new valve is intended... [Read More]

June 19, 2017
Arca is offering a unique new solution for accessing the technical documentation for its control valves. Operation and maintenance personnel regularly need access to technical documentation and information... [Read More]

June 19, 2017
New research could lead to a significant reduction in corrosion, an issue that has long been a costly one for a range of fluid handling applications. Researchers at Oregon State University and the University... [Read More]

June 16, 2017
US based Atlas Copco Portable Energy has added to its medium and large submersible dewatering pumps with the launch of the WEDA+ plug and play range. Five models are included in the WEDA+ range: the WEDA... [Read More]

June 16, 2017
Honeywell Process Solutions has announced the launch of a new ultrasonic gas flowmeter, which the company claims offers the ‘highest available’ level of accuracy in custody transfer processes. Called... [Read More]

June 15, 2017
The Hydraulic Institute will co-locate its 2017 Fall Conference with the Fluid Sealing Association Fall Meeting for the first time. The joint event will take place at the Renaissance Worthington in Fort... [Read More]

June 15, 2017
Industrial process instrumentation specialist Krohne has launched what it dubs ‘a new generation’ of liquid and solids level measurement products. According to the company, the new level measurement... [Read More]

June 14, 2017
The US Environmental Protection Agency has proposed a two year pause on an oil and gas pollution rule created by the Obama administration. In May 2016, the Obama administration finalised new rules designed... [Read More]

June 14, 2017
Huntingdon Fusion Techniques (HFT) has announced the launch of its new PurgEye Desk Weld Purge Monitor. “Weld purging is the act of removing oxygen from the vicinity of a weld before, during and... [Read More]