Bosch weighs offer for appliance maker Whirlpool, sources say

Arcelik

26/06/2024 15:26

(Adds analysts' comments in paragraphs 7, 8, 16)
    By Anirban Sen and Emma-Victoria Farr
       June 26 (Reuters) - German engineering group Robert
Bosch is weighing a bid for U.S. appliances manufacturer
Whirlpool  WHR.N , according to three people familiar with the
matter, a move that would boost its position in the household
appliances market.
    Bosch has been talking to potential advisers about the
possibility of making an offer for Whirlpool, which has a market
capitalisation of about $4.8 billion, one of the sources said.
    The sources said it was not certain that an offer would be
made, and asked not to be identified because the matter is
confidential.
    Spokespeople for Bosch and Whirlpool said the companies do
not comment on "market rumours". The U.S. company's shares rose
12.7% in early trading after the Reuters report.
    Buying one of the world's biggest white-goods manufacturers
would significantly beef up Bosch's home appliance business at a
time when competition with Asian rivals is growing.
    Whirlpool has been undergoing a major restructuring in
recent years, which has seen it fold its European business into
a new company controlled by Turkish rival Arcelik  ARCLK.IS  and
divest its Middle Eastern and African businesses.
    "A potential acquirer could believe in the potential for
some future recovery with the right multi-year timeframe and
macro backdrop," RBC Capital Markets analyst Michael Dahl said.
    Whirlpool is facing "significant challenges" owing to a
depressed spending environment, Dahl added.
    The potential takeover comes as Bosch, the world's biggest
automotive supplier, is looking at acquisitions to grow its unit
that manufactures large home appliances.
    A deal for Whirlpool, whose brands include Ariston,
Hotpoint, Ignis and Privileg, would rank amongst the biggest
disclosed deals for the German industrial group.
    Reuters reported in March that Bosch was among the
industrial firms competing to acquire heating and ventilation
assets worth over $6 billion from Johnson Controls International
 JCI.N  in the U.S.
    Bosch CEO Stefan Hartung told German business daily
Handelsblatt in May that the company was looking at a few bigger
acquisition targets, and that it did not rule out entering a new
business area or a global deal.
    He told reporters earlier in June that the group was open to
listing some of its divisions on the stock market as it explores
financing options for deals. He did not say which divisions.
    Whirlpool, a household name known for its large appliances
such as washing machines and refrigerators, has in recent years
been aiming to grow its customer base by expanding in smaller
appliances such as espresso machines and other kitchen gadgets
as it grapples with a slowdown in growth.
    The Michigan-based company recently said it would cut about
1,000 jobs in an effort to boost profit margins.
    Longbow Research analyst David MacGregor believes Whirlpool
may be supportive of the bid at the right price.
    Whirlpool has lost almost 50% of its market value over the
past two years. Its Swedish rival Electrolux  ELUXb.ST  is down
35% in the same period. 
    Electrolux shares rose following the report, and were
trading up about 4.5% at 1040 GMT.

 (Reporting by Anirban Sen in New York and Emma-Victoria Farr in
Frankfurt; Additional reporting by Josephine Mason in London,
Alexander Huebner in Munich and Kannaki Deka in Bengaluru;
Editing by Elisa Martinuzzi, Mark Potter, Jan Harvey and Shounak
Dasgupta)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))