Bosch weighs offer for appliance maker Whirlpool, sources say
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 tradingafter 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
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.