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It will also acquire full ownership of a joint venture with Hitachi, which includes the Japanese manufacturer’s 40% stake
ENGINEERING company Robert Bosch plans to buy Johnson Controls International’s heating and ventilation assets for US$8 billion, as it diversifies its portfolio away from automotive supplies.
All parties have signed binding agreements, the German company said on Tuesday (Jul 23). The deal, which is subject to regulatory approval, is expected to close in 12 months.
As part of the agreement, Bosch will acquire full ownership of Johnson Controls’ air-conditioning joint venture with Hitachi – including the Japanese manufacturer’s 40 per cent stake.
The deal helps Bosch tap new markets and expand away from its automotive business as carmakers shift to electric vehicles. The company had competed against other suitors for the assets and recently emerged as the frontrunner.
The transaction is the largest in Bosch’s history and will nearly double its home comfort business to nine billion euros (S$13.2 billion) from five billion euros in sales, the company said.
The deal includes 16 production sites and 12 development sites in more than 30 countries.
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Bosch chief executive officer Stefan Hartung said that the deal aims to help the company achieve a global leading position in the heating, ventilation and air-conditioning market.
“It also strengthens our presence in the US and Asia, and balances our company divisions,” Hartung added.
Bosch projects that the global market for heat pumps, ventilation and air-conditioning systems will grow by 40 per cent until 2030.
The growing market requires increasingly large investments. In 2023, US air-conditioner maker Carrier Global paid 12 billion euros to take over most of German family-owned Viessmann to expand its heating and cooling operations. BLOOMBERG
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