Samsung Electronics in Talks to Acquire Cooling Maker Modine, Bloomberg Says

what happened

According to Bloomberg News, Samsung Electronics is negotiating a possible takeover of Modine Manufacturing, a company listed in the United States that builds cooling equipment for data centers. Bloomberg cited people with knowledge of the matter on Thursday, while Reuters said it had not been able to confirm the report right away.

The deal could be announced within the next few weeks, the report said, though no final decision has been reached and the talks might collapse. Another bidder could also appear. After the report, Modine shares jumped 29% in after-hours trading. As of Thursday, the company's market value stood at $5.6 billion, according to LSEG data. Neither Samsung nor Modine could be reached for comment.

why it matters

Demand for data center cooling is tied closely to the expansion of data centers, so a possible deal would be a notable move by a large electronics group into that niche. For investors, the key question is whether a deal is actually signed and on what terms.

market impact

Modine shares: reported Samsung interest supports the stock, though the deal is not yet confirmed

• ▲Modine shares pressure up — reports of a possible Samsung purchase lifted the stock in extended trading

tags

instruments