Viessmann Group of Germany is selling its heat pump business, which is seen as a critical technology for the transition away from fossil fuel heating, to Florida-based Carrier Global Corp. for 12 billion euros ($13.2 billion).
The sale of Viessmann’s “climate solutions” division, disclosed late Tuesday by both businesses, comes as Germany implements plans to phase out gas and oil heating systems in favour of more environmentally friendly options. Heat pumps that run on electricity and either ambient air or groundwater are thought to be significantly more efficient than standard combustion furnaces.
German Vice Chancellor Robert Habeck, who is in charge of those plans, said the Viessmann deal demonstrated that the market for heat pumps is “so attractive that it is drawing investment,” but he added that the government would scrutinise the deal.
