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Samsung Electronics is in talks to acquire US-based Modine Manufacturing, potentially strengthening its position in the data center cooling market as demand for artificial intelligence infrastructure rises. Bloomberg News reported the discussions on Thursday, citing people familiar with the matter.
A deal could come together within the coming weeks, the report said. However, no final decision has been made; the talks could collapse, and another bidder may emerge.
Modine shares jumped 29% in extended trading after the report. The company had a market value of about USD 5.6 billion as of Thursday, according to LSEG data. Reuters could not independently verify the report. Samsung and Modine did not immediately respond to requests for comment.
Based in Racine, Wisconsin, Modine makes heating and cooling systems for large commercial buildings and industrial equipment. Its fastest-growing business supplies cooling solutions to hyperscalers, which operate large data centers for cloud computing and AI services.
As data centers house powerful chips, they consume more electricity and generate substantial heat. Efficient cooling has therefore become essential to keeping AI operations running reliably.
Modine spun off its automotive business in October to focus on thermal-management operations, including data center cooling.
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The reported talks would build on Samsung’s efforts to grow its thermal-management business. The South Korean technology group acquired Germany-based FläktGroup for 1.5 billion euros, or about USD 1.7 billion, last year, expanding its presence in heating, ventilation and air-conditioning.
A potential acquisition of Modine would help Samsung compete with companies such as Daikin Industries, LG Electronics and US-based Vertiv Holdings for AI data center business.
The discussions reflect a wider push by technology and industrial companies to capture growth in AI infrastructure. For now, however, any deal remains uncertain, with no agreement announced.