Sending shockwaves into communities across Southwest Michigan this morning, there’s word that Whirlpool Corporation might be the target of an acquisition bid by German engineering group Robert Bosch.
The news first surfaced in a report from the Reuters news organization:
“…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 capitalization 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.
“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.”
Rumors have swirled for weeks over whether Whirlpool Corp. is a ripe target for acquisition by private equity firms or others. Confidential sources indicated a potential buyer was close to making a deal to buy Whirlpool Corporation within the last two years, but backed out prior to any public disclosure.
Whirlpool Corporation’s recent restructuring saw the loss of an estimated 1,000 white-collar employees from their headquarters and other key positions in product development, human resources, and quality control. At the time, the company stated that it, “…will shift to a decentralized model with more autonomous business units and a leaner, more strategic corporate center.”
Asked about reports of a potential sale, a Whirlpool spokesperson stated, “As a matter of policy, we do not comment on market rumors or speculation.”
This story will be updated as developments dictate.
