Bosch Considers Acquiring Whirlpool – RetailWire

German engineering giant Robert Bosch is considering a potential offer for US home appliance manufacturer Whirlpool, which could significantly strengthen Bosch’s position in the home appliance market. This potential acquisition, which sources say is still under discussion, would give Bosch a stronger position in the face of increasing competition from Asian manufacturers.

Bosch CEO Stefan Hartung has indicated the company is open to major acquisitions, even suggesting the possibility of entering new business areas or engaging in global transactions. Bosch is also exploring various financing options for such deals, including a potential listing of some of its divisions on the stock exchange.

News of Bosch’s interest has already had an impact on the market, with Whirlpool shares rising 12.7% in early trading following the report. The acquisition of Whirlpool, known for brands such as Ariston, Hotpoint, Ignis and Privileg, would be one of the largest disclosed transactions for Bosch, expanding its portfolio in the home appliances sector.

Bosch has reportedly consulted with potential advisers about the possibility of bidding for Whirlpool, which currently has a market capitalization of about $4.8 billion. However, it is not certain whether Bosch will submit an official offer. Both Bosch and Whirlpool declined to comment on this speculation, citing a policy of not commenting on market rumors.

Consideration of the acquisition is part of Bosch’s broader strategy of growth through acquisitions. Bosch, the world’s leading automotive supplier, is actively trying to expand its large home appliances division. Earlier this year, it was reported that Bosch was among the bidders to purchase over $6 billion in heating and ventilation assets from Johnson Controls International in the US

Whirlpool has undergone significant restructuring in recent years, integrating its European operations with Turkish rival Arcelik and divesting its businesses in the Middle East and Africa. This restructuring is part of Whirlpool’s strategy to address the challenges in a depressed spending market. Analysts suggest a potential buyer could see value in Whirlpool’s long-term recovery potential under the right terms.

Whirlpool, a brand synonymous with large appliances like washing machines and refrigerators, has responded to slowing growth by recently expanding into smaller appliances, including coffee makers and kitchen gadgets. The company also announced plans to lay off about 1,000 workers in a bid to improve profit margins.

Market analysts believe that Whirlpool may be open to Bosch’s offer if it is attractive enough. Despite recent challenges, including a nearly 50% decline in market value over the past two years, Whirlpool remains a key player in the home appliances market. The news also had a positive impact on Whirlpool’s Swedish rival, Electrolux, whose shares rose about 4.5% following the report.