Bosch the German engineering and technology major is thinking about making an offer for U.S. appliance maker Whirlpool, say three sources. This move could strengthen Bosch’s position in the home appliances market. Bosch is discussing the idea with advisors, but it is uncertain if they will proceed.
Neither Bosch nor Whirlpool commented on the news. Whirlpool’s shares rose 12.7% after the report. Buying Whirlpool, valued at about $4.8 billion, would enhance Bosch’s home appliance business amid growing competition from Asian companies.
Whirlpool has been restructuring, merging its European business with Turkish company Arcelik and selling its Middle Eastern and African businesses. Analysts believe a potential buyer might see long-term recovery potential for Whirlpool.
This deal would be one of Bosch’s largest acquisitions. Bosch has also shown interest in other major deals, such as acquiring assets from Johnson Controls International. Bosch CEO Stefan Hartung recently mentioned that the company is open to significant acquisitions and might list some divisions on the stock market.
Whirlpool, known for large appliances like washing machines and refrigerators, has been expanding into smaller appliances to grow its customer base. The Michigan-based company recently announced it would cut 1,000 jobs to improve profit margins. Whirlpool’s market value has dropped nearly 50% in the past two years.
