The sale of Viessmann's "climate solutions" business, which includes heat pumps and which both companies announced late Tuesday, comes as Germany is putting into place plans to phase out gas and oil heating systems as a way to curb global warming. Heat pumps are seen as important to weaning Germans off those systems.
Senior opposition lawmaker Jens Spahn, in comments to the RND newspaper group, accused the government of piling pressure on manufacturers to step up their production fast or risk losing market share to Asian competitors. The deal entails Carrier paying 80% in cash and 20% in Carrier shares to Viessmann. It will see family-owned Viessmann become one of the biggest shareholders in Carrier, of Palm Beach Gardens, Florida. The German company's CEO, Max Viessmann, will join Carrier's board of directors when the deal is completed, which is expected around the end of the year.
Viessmann said the U.S. firm's "global reach, broad product portfolio, financial strength and shared commitment to sustainability" would enable its business to "maximize our impact on Europe's independent energy transition."