American appliances manufacturer Whirlpool has seen its stock go on a massive surge on Wednesday, rallying 17.06%. A likely reason for the jump is a recent report by Reuters that German engineering and technology company Bosch is considering making a bid for the company.
According to three sources who talked with Reuters, Bosch has already got in touch with potential advisors. Still, no offer has been made, and it is not guaranteed that Bosch will follow up its interest with an official bid.
Bosch is likely looking to extend its reach into the household appliances market, particularly in the United States. The company is facing increasing competition from Asian manufacturers and is looking to ramp up its production, particularly when it comes to larger appliances like refrigerators and washers.
Whirlpool has been struggling lately, and its attempts to grow its customer base with smaller kitchen appliances have largely fallen flat. The company recorded $4.49 billion in revenue in the first quarter, 3.42% less compared to the same period in 2023, while also recording a net income loss of $259 million.
The shares of Whirlpool dipped to $84.78 back in May, their lowest point since 2020. The most recent surge helped the company’s stock climb all the way to $101.91, which is still 17.08% down year-to-date.