Bosch eyes acquisition of Whirlpool US, stock price rises 10%

German Engineering Giant, Rober Bosch is reportedly considering acquiring US-based Whirlpool corporation. The acquisition aims to bolster Bosch’s position in a sector marked by intense competition, particularly from Asian manufacturers. The announcement of the acquisition was reported by Reuters on June 26, 2024. Ahead of this news, the shares of Whirlpool-India saw a significant surge of around 10% in the early day today. Shares of Whirlpool were trading 9.14% higher at ₹2,004.95 apiece on the NSE at 12:42 PM.

The acquisition of Whirlpool would be a significant move for Bosch that allows the company to expand its footprint in the global household appliances market. The sector is currently experiencing huge competition, with Asian manufacturers such as Samsung and LG making their inroads.

Whirlpool sold 24% stake in its Indian arm for $468 million, earlier this year. The transaction, conducted through its subsidiary in Mauritius, reduced Whirlpool’s holding in the Indian entity from 75% to 51%. This stake was acquired by multiple investors such as SBI Mutual Fund, Societe Generale, Nippon India Mutual Fund, and three others at a price of ₹1,277 per share according to the bulk deal data from the BSE.

Whirlpool is undergoing a major restructuring in recent years as it aims to strengthen its operations. Whirlpool consolidated its European business into a new entity controlled by Turkish rival Arcelik. This restructuring also involved divesting its businesses in the Middle East and Africa, symbolising a strategic pivot towards more profitable regions.