On Breakingviews: Carrier is buying the energy unit of Viessmann. It’s a setback for German and EU ambitions to create regional leaders in new tech. Yet for continental groups to compete globally, loss of control may be a necessary price, says pamela_msg
Heat pumps may not be the most obvious sector to lead a revival in transatlantic cross-border M&A, down 31% so far this year. The technology may help cut emissions by replacing gas boilers, and has been identified by the European Union as a critical industry, just like wind turbine and battery manufacturing. Brussels is implementing more relaxed
on state subsidies to avoid losing out to the U.S.’s green technology plan, the Inflation Reduction Act. Privately held Viessmann is riding this trend: its sales have grown at a 15% annual clip since 2020., Samsung and Mitsubishi are expanding rapidly in Europe and the likes of Viessmann are struggling to retain market share on their home turf. Teaming up with Carrier gives the German group better access to the U.S. market, as well as the benefit of Carrier’s expertise in air conditioning.
Carrier’s green pivot isn’t cheap. The group is paying around 17 times the Viessmann unit’s 2023 EBITDA, far more than its own forward multiple of around 11 times, as per Refinitiv data. Still, the price is not egregious: Viessmann’s Swedish peer Nibe Industrier is valued at 25 times EBITDA including debt. And Carrier reckons it can squeeze out cost savings equivalent to some $200 million. Taxed and capitalised on a multiple of 10, those could be worth some $1.4 billion in today’s money.
That valuation may also reflect the deal’s terms. Viessmann has secured job protections in Germany and a Carrier board seat for current Chief Executive Max Viessmann. But, with some 80% of the purchase paid in cash, the deal effectively sees a prized asset of the future handed over to American control, rather than remaining a European champion. But to thrive, rather than merely survive, such compromise looks like a necessary step.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
WSJ News Exclusive | Carrier Nears Deal for German Industrial Manufacturer ViessmannCarrier Global is in advanced talks to acquire German industrial manufacturer Viessmann for about $13 billion including debt, according to people familiar with the matter.
Consulte Mais informação »
Carrier to Buy Viessmann Climate Solutions for Nearly $13.2 BillionCarrier Global has agreed to acquire Viessmann Climate Solutions, expanding the air-conditioner maker’s business outside of the U.S.
Consulte Mais informação »
German $13 bln heat pump sale dents EU green hopesUS firm Carrier Global is buying the energy unit of family-owned Viessmann. It’s a setback for German and European ambitions to create regional leaders in new technology. Yet for continental groups to compete globally, loss of control may be a necessary price.
Consulte Mais informação »
Pentagon leak says China conducted first operation with new helicopter carrierDefense Secretary Lloyd Austin and Gen. Mark Milley, chairman of the Joint Chiefs of Staff, were briefed on intelligence regarding a new Chinese helicopter aircraft carrier that is poised to be a significant tool for Beijing’s plan to project power in the region, according to a leaked Pentagon document.
Consulte Mais informação »
Southwest Airlines meteorologists reach tentative contract deal with Dallas carrierThe airline’s meteorologists, represented by Transport Workers Union 550, become the ninth employee group to reach a deal with the company.
Consulte Mais informação »
German economy likely grew in Q1, beating expectations - BundesbankThe German economy is likely to have expanded in the last quarter on a rebound in industrial production, the Bundesbank said in a monthly report on Monday, revising its previous prediction of a small contraction.
Consulte Mais informação »