NEW YORK: Air-conditioner maker Carrier Global Corp is in advanced talks to acquire German industrial manufacturer Viessmann for more than US$12 billion (RM53.2 billion), including debt, according to people familiar with the matter.
The cash-and-stock deal could be announced as soon as this week, the sources said. One of the sources said the deal could be announced on Wednesday (April 26), adding Carrier is primarily buying Viessmann’s air-conditioning division, which includes heating and heat pumps, and accounts for the vast majority of the German company’s business.
The deal for Viessmann is part of a broader strategic overhaul at Carrier, which is separately working with advisers to spin off its fire and security business, the sources said. The sources requested anonymity as these discussions are confidential.
Carrier did not immediately respond to requests for comment. Viessmann declined to comment. Shares of Carrier fell over 7% to US$41.80 apiece in the afternoon trading, giving the company a market capitalisation of about US$35 billion.
Carrier was formed in 2020 after United Technologies Corp split up into three separate companies consisting of its aerospace, elevators and building divisions.
Viessmann’s operations in climate and energy solutions would help Carrier diversify as it looks to add production amid supply chain snags.
The deal for Viessmann is also expected to drive Florida-based Carrier’s plans to expand across different geographies and boost revenue from aftermarket services.
Viessmann, a global family business founded in 1917, runs 22 production companies in 12 countries, with more than 56% of revenue generated outside of Germany, according to the company’s website.
News of the talks between Carrier and Viessmann was first reported by The Wall Street Journal on Monday.