German Habeck negotiates sale of heat pump manufacturer to American company

German Economy Minister Robert Habeck said on Wednesday that the sale of a domestic heat pump maker to U.S. rival Carrier Global showed Germany remained attractive to investors, but added he would look closely the deal.

What did Habeck say about the sale?

“The planned sale of the Viessman division shows that climate protection technologies are the future,” Habeck said in a statement.

He added that the sale shows that German companies attract a substantial amount of capital and that the heat pump market attracts investors.

The minister said the government’s “energy and heat transition” measures set the path for “great value and growth”.

However, Habeck emphasized that it is important that “the advantages of our energy policy and the profits generated continue to benefit Germany”.

He said the government is in talks with Viessman and Carrier Global to ensure the project serves the German economy.

Carrier Global said on Tuesday it had agreed to buy German firm Viessman’s “climate solutions” business for $12 billion (€10.9 billion).

The deal also makes Viessman one of Carrier’s largest shareholders. The CEO of the German company, Max Viessmann, is expected to join Carrier’s board of directors.

Energy policy faces criticism from coalition partners and opposition

Meanwhile, German politicians criticized the development and warned of possible negative impacts on the German economy.

Bijan Djir-Sarai, secretary general of the business-oriented Free Democrats (FDP), told the handelsblatt Financial Daily that the sale showed how a “hurried and complicated” energy transition could have a “negative impact on the German economy”.

The FDP is in coalition with Chancellor Olaf Scholz’s center-left Social Democrats (SPD) and the Green Environmentalists, of which Habeck is a member. Energy policy has been a major point of contention between coalition partners.

Julia Klöckner, economic spokeswoman for the opposition conservative bloc (CDU/CSU), told the Funke media group that it was a “pity” that a German family business had ended up in US hands.

Klöckner said Germany’s planned ban on gas boilers made takeovers of German companies more attractive to foreign investors. She said that strong partnerships are necessary for the domestic industry to remain competitive.

In comments to the RND news group, CDU MP Jens Spahn accused the government of pressuring manufacturers to increase production to compete with Asian companies.

“Apparently foreign investors are needed for this,” Spahn said, arguing that government policies were causing a “sale of the German heat pump”.

The demand for heat pumps is expected to increase due to measures aimed at reducing the use of fossil fuels in homes. The German Ministry of Economy has proposed a ban on the installation of new oil and gas boilers from 2024.

sdi/wd (AFP, AP, dpa)

While you’re here: Every Tuesday, DW editors round up what’s happening in German politics and society. You can sign up here for the weekly Berlin Briefing email newsletter.