June 6 (Reuters) - Emerson said on Thursday it

had agreed to sell its remaining stake in its Copeland joint

venture to Blackstone in a $3.5 billion deal, as the U.S.

industrial firm further streamlines its business to sharpen

focus on automation.

Private equity funds managed by Blackstone would purchase

Emerson's 40% equity ownership in the joint venture, Emerson

said.

"We believe now is the right time to execute our plans to

fully exit the Copeland business. This agreement with Blackstone

provides certainty and portfolio simplification to Emerson

shareholders," CEO Lal Karsanbhai said.

The Copeland JV was established after Emerson struck a

$14 billion deal

to sell a majority stake in its Climate Technologies unit

to Blackstone in October 2022, as part of an effort to establish

itself as a major player in the global automation industry.

Since then, Emerson has deepened its push into

automation through deals such as the

$8.2 billion takeover

of measurement equipment maker National Instruments, which

helped it capture key markets like semiconductors, electronics

and transportation.

Emerson said on Thursday it expects the deal to close in

the second half of 2024, adding that it would use the $2.9

billion after-tax cash proceeds from the deal to pay down its

existing debt obligations.

A wholly owned subsidiary of the Abu Dhabi Investment

Authority and Singapore state fund GIC would invest alongside

Blackstone as part of the transaction.

Davis Polk & Wardwell LLP served as legal adviser and

Goldman Sachs & Co. LLC served as the exclusive financial

adviser to Emerson, the company said.