For weeks now, we’ve been receiving information from various sources regarding the potential sale of Whirlpool Corporation. To date, no official confirmation has been found to back up the information and a Whirlpool Corporation spokesperson said they do not comment on rumors.
Well, the stock market is putting their money on the rumors.
Whirlpool Corporation’s stock has climbed this morning on a report from Reuters indicating German engineering group Robert Bosch is weighing a bid for U.S. appliances manufacturer.
The Reuters report is as follows:
“…Bosch is weighing a bid for the U.S. appliances manufacturer 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.
“A Bosch spokesperson said the company does not comment on “market rumours”, while officials at Whirlpool were not immediately available for comment. The U.S. company’s shares jumped 20% in premarket 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.
“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… would rank amongst the biggest disclosed deals for the German industrial group.”
Moody on the Market will continue to bring updates on this story as developments occur.
