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German engineering group Robert Bosch is considering a bid for U.S. appliance manufacturer Whirlpool, according to three sources familiar with the matter.
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If Bosch proceeds with the bid, it would strengthen its position in the household appliances market, particularly against growing competition from Asian companies.
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Bosch has been consulting potential advisers about the possibility of making an offer. However, it is not certain that an offer will be made, and the sources requested anonymity due to the confidential nature of the discussions.
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Spokespeople for both Bosch and Whirlpool declined to comment on what they referred to as "market rumours".
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Following the Reuters report, Whirlpool’s shares surged by 20% in premarket trading.
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Whirlpool has been restructuring, which included merging its European business with a new company controlled by Turkish rival Arcelik and selling off its Middle Eastern and African businesses.
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Acquiring Whirlpool would significantly enhance Bosch’s home appliance business. This move aligns with Bosch's strategy of exploring acquisitions to grow its large home appliance manufacturing unit.
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Whirlpool owns several well-known brands, including Ariston, Hotpoint, Ignis, and Privileg. Acquiring these brands would mark one of Bosch's biggest disclosed deals.
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Bosch had shown interest in acquiring heating and ventilation assets worth over $6 billion from Johnson Controls International earlier in the year, highlighting its active pursuit of strategic acquisitions.
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Whirlpool has been expanding into smaller appliances like espresso machines to attract more customers amidst slower growth. Recently, the Michigan-based company announced it would cut about 1,000 jobs to improve profit margins. Over the past two years, Whirlpool’s market value has dropped by almost 50%, while its Swedish competitor Electrolux has also seen a decline of 35% in the same period.