Despite having billions of dollars in cash, Samsung hasn't made any acquisitions over the past seven years. Its last major acquisition was that of Harman International. Recent reports have suggested that the company is looking to be more active in the mergers and acquisitions segment now, and it appears Samsung may already have a large.t
However, even though some rumors have suggested that it might buy a semiconductor company or one that helps improve its mobile devices, the company Samsung Electronics might actually be interested in makes air conditioning systems.
Samsung is one of the many bidders for this company
According to reports, Samsung has joined multiple other companies in trying to buy Johnson Controls International’ heating, ventilation and air conditioning (HVAC) assets that are worth more than $6 billion. Other bidders include Robert Bosch and Lennox International.
Other bidders may also emerge so a potential deal may not be clinched for at least a couple of months. If Samsung manages to buy this company, it would be its first acquisition in seven years, one that positions Samsung to establish dominance in the HVAC market that's expected to grow significantly in the coming years.
This possibility doesn't exactly come as a surprise. Samsung Electronics Chief Executive Han Jong-hee said during the company's recent annual shareholders meeting that progress has been made on a new M&A deal and that the details would be revealed soon. Johnson Controls is selling its residential and light commercial businesses, in addition to its business in the US as well as an AC venture with Hitachi.
With more than $60 billion cash in the back, Samsung may also look to acquire other companies, even if this deal goes through. Some reports have suggested that Samsung has considered acquiring the automative electronic business of Germany-based Continental AG.
