Shares of Whirlpool (WHR) saw significant gains during intraday trading on Wednesday, following a report suggesting that German competitor Robert Bosch is contemplating the acquisition of the U.S.-based appliance manufacturer.
According to Reuters, Bosch is currently in discussions with potential advisors about making a bid for Whirlpool. This move could potentially broaden Bosch’s presence in the home appliance market. However, the news outlet cautioned that it’s not yet certain if an official offer will materialize.
Whirlpool and Bosch Decline to Comment on Speculation
In email statements to Investopedia, representatives from both Whirlpool and Bosch stated that it is their standard policy not to comment on market rumors.
Last month, Whirlpool’s stock had plummeted to its lowest point since the COVID-19 pandemic began, largely due to a decline in consumer spending driven by high inflation. This reduction in spending led to a decrease in demand for expensive household items such as washing machines and dryers. In its first-quarter earnings report released in April, Whirlpool reported an 8.1% year-over-year drop in North American sales, attributing the decline to an “unfavorable price/mix and industry decline of approximately 2%.” Chief Executive Officer (CEO) Marc Bitzer cited “sticky inflation” as a continuing challenge for the company.
By 11:15 a.m. ET on Wednesday, Whirlpool’s shares had surged approximately 11%, reaching $96.52 and bringing the company’s market capitalization to about $5.3 billion. Despite this uptick, Whirlpool shares are still down more than 20% for the year 2024.
Source: Investopida
