German engineering giant Robert Bosch is contemplating a bid for U.S. appliance manufacturer Whirlpool, aiming to enhance its presence in the household appliances market, according to three individuals familiar with the situation.
Bosch has initiated discussions with potential advisors regarding a possible offer for Whirlpool, which currently holds a market capitalization of approximately $4.8 billion, one source disclosed.
The sources, who requested anonymity due to the confidential nature of the matter, emphasized that a final decision to make an offer has not been made.
Representatives from Bosch and Whirlpool declined to comment on what they described as “market rumors.” Following the Reuters report, Whirlpool’s shares saw a 12.7% increase in early trading.
A successful acquisition of Whirlpool, a major player in the white-goods industry, would significantly bolster Bosch’s home appliance division amid intensifying competition from Asian manufacturers.
In recent years, Whirlpool has undergone substantial restructuring, including merging its European operations with Turkish competitor Arcelik and divesting 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,” commented RBC Capital Markets analyst Michael Dahl. Dahl also noted the “significant challenges” Whirlpool faces due to the current depressed spending environment.
The potential acquisition aligns with Bosch’s strategy to expand its large home appliance segment. Bosch, known primarily as the world’s leading automotive supplier, has been exploring acquisitions to diversify and strengthen its market position.
Whirlpool, which owns well-known brands such as Ariston, Hotpoint, Ignis, and Privileg, could be one of Bosch’s largest disclosed acquisitions if the deal proceeds.
In March, Reuters reported that Bosch was among the companies bidding for heating and ventilation assets worth over $6 billion from Johnson Controls International in the U.S. Bosch CEO Stefan Hartung mentioned in May that the company was eyeing several larger acquisition targets, potentially entering new business areas or engaging in global deals.
Whirlpool has been diversifying its product range to include smaller appliances like espresso machines and kitchen gadgets, aiming to broaden its customer base amid a growth slowdown. The Michigan-based company recently announced plans to cut approximately 1,000 jobs to improve profit margins.
Longbow Research analyst David MacGregor suggested that Whirlpool might be receptive to a bid if the price is right, given its significant market value loss over the past two years. Meanwhile, shares of Whirlpool’s Swedish rival, Electrolux, which has also experienced a downturn, rose by about 4.5% following the report.
