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German Company Sells Heat Pump Business to US Firm Carrier

BERLIN (AP) — Germany’s Viessmann Group is selling its heat pump business, viewed as a key technology for the transition away from fossil fuel heating, to Florida-based Carrier Global Corp. as part of a 12 billion-euro ($13.2 billion) deal.

The sale of Viessmann’s “climate solutions” business, announced by both companies late Tuesday, comes as Germany is putting into place plans to phase out gas and oil heating systems in favor of climate-friendly alternatives. Heat pumps, which use electricity and ambient air or groundwater, are considered far more efficient than traditional combustion furnaces.

German Vice Chancellor Robert Habeck, who is leading those plans, said the Viessmann deal showed that the market for heat pumps was “so attractive that it is drawing investment,” but added that the government would scrutinize the deal.

“It is important that the advantages of our energy policy and profits that are made with it continue to benefit Germany as a location,” he said. “We will pay attention to this.”

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.

Source : AP News