Breaking a seven-year trend of maintaining its huge cash reserves, Samsung is reportedly eyeing a surprise acquisition target: JCI’s HVAC (heating, ventilation, and air conditioning) business unit. The deal is estimated to be worth more than $6 billion and is Samsung’s first type of buyback since it bought Harman International in 2017.
However, with the rumor spreading regarding semiconductor or cellular handsets being the reason for Samsung to acquire Johnson Controls, we can see that Samsung is going for a strategic repositioning. There is currently a huge amount of potential in the HVAC market around the world, and this acquisition helps Samsung prove itself as one of the world’s leading players in this field.
Samsung is not the only company that hopes to get this lucrative contract. People like Robert Bosch and Lennox International are not in favor of it. They are also coming to acquire the assets of Johnson Controls, which includes residential and light commercial HVAC businesses in the US in addition to a joint venture with Hitachi. But it took months for the final decision to be made and Samsung is still set to win the actor.
This merger and acquisition will complement the latest release from Samsung CEO Han Jong-hee, who hinted at progress on a new deal during the annual general meeting. On the defensive, with a cash war chest of over $60 billion in its kitty, which is expected to remain a vulnerable gun to market challenges like the departure of incumbent Johnson Controls, Samsung may not be unstoppable. On purchasing the said company. The technology giant is looking to acquire the car electronics portion of a division of Continental AG, thus expanding the business accessories portfolio, news sources have revealed.
