A Mega-Merger Defies Market Turmoil

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and industrials editor/analyst Brendan Byrnes discuss topics across the investing world.

In today's edition, Isaac and Brendan discuss a major acquisition announced by Eaton. The industrial giant proposed a $11.8 billion bid for electrical equipment maker Cooper Industries in an attempt to broaden the company's capabilities in the energy and power markets. The bid sent shares of Cooper soaring over 25% during Monday's trading and marks the third-largest proposed merger of 2012. Large industrial conglomerates such as Eaton are seeking to consolidate their offerings in the electrical power arena and are willing to take on debt to establish a global brand. Watch the video below to find out whether Isaac believes this merger makes sense.

Eaton's bet on growth in the electrical industry speaks to a broader trend: soaring energy prices and a drive toward efficiency. Nevertheless, investors can charge up their portfolio by selecting the best stocks to ride the energy wave. Here at The Motley Fool, we've identified our favorite pick in the special free report, "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

Brendan Byrnes has no positions in the stocks mentioned above. Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of ABB. Motley Fool newsletter services recommend ABB and Emerson Electric. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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