Bosch weighs potential bid for Whirlpool: Reuters

Whirlpool (WHR) shares are trading higher during Wednesday's morning trading session following a Reuters report that German engineering company Bosch (BFREN.IS) is exploring a potential bid for the appliance maker.

Yahoo Finance's Seana Smith and Brad Smith break down the details, providing insights into how this partnership would benefit both Bosch and Whirlpool.

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This post was written by Angel Smith

Video transcript

All right, let's take a look at Whirlpool.

It's another stock that is trending here on Yahoo Finance shares are surging.

Look that up Just around 18%.

The company, uh, that, uh this comes after German engineering group Bosch is reportedly eyeing a bid for a whirlpool.

Now, this is according to a report here from Reuters, in a statement to Yahoo Finance Whirlpool saying Quote as a matter of policy, we do not comment on market rumours or speculation.

So lots of questions about the odds of this happening and why this could potentially, uh, make sense here for Bosch.

And this would significantly, uh, help boost Bosch's home appliance business.

Obviously, at a time when there is much competition within the space increasing competition within the space when it comes to what Whirlpool could potentially add to Bosch's business, it could be viewed as a catalyst here for shares going forward for their business going forward.

But again, we're looking at gains of just about 18% bred.

Yeah, Whirlpool had been offloading certain parts of its business as well.

Anybody who listened to the last earnings call heard them talk, talk about executing on the announced sale of their 24% stake in Whirlpool of India.

They still retain about 51% ownership.

But it does beg the question of what parts of the business they're open to evaluating a potential sale, if not the entire business.

So that is one of the areas especially considering what they've been talking about within the demand that they're seeing, especially here in North America.

They continue to see that industry volume being soft, at least during this past first quarter promotions, remaining elevated, persistently high interest rates and then that continuing to put pressure on housing affordability and overall consumer discretionary spending.

What's that mean?

Less fridges, less washer dryers, that people are perhaps, uh, replenishing as they're getting into some of or historically would have been getting into some of those new homes and, uh, and and pads or or yeah, and I mean and take a look at the stock right?

We just have some of the longer term, uh, charts up on the screen there.

Year to date.

This is a stock that's tremendously underperformed the broader market.

You're taking a look at the last 12 months, not much of a different story there.

You're looking at decline of nearly 40%.

So they need to turn around the business.

They need to figure out something that would look attractive.

So maybe you never know.

But maybe Whirlpool's board would entertain.

It is entertaining this offer.

If there's one?

Yeah, that's true.