Georg Fischer Said to Weigh Potential Counterbid for Uponor

(Bloomberg) — Swiss industrial company Georg Fischer AG is exploring a potential offer for Finnish plumbing-equipment manufacturer Uponor Oyj, according to people familiar with the matter, setting up the prospect of a bidding war with Belgium’s Aliaxis SA.

Schaffhausen, Switzerland-based Georg Fischer is among parties that have signaled interest in Uponor, said the people, who asked not to be identified because discussions are private. Deliberations are ongoing, and it’s unclear whether the other suitors will move ahead with formal offers, the people said.

Shares of Uponor jumped as much as 14% on Tuesday, hitting the highest intraday level since 2007. They were up 4.8% at the close in Helsinki, giving the company a market capitalization of €2.1 billion ($2.2 billion). George Fischer fell 4.1% in Zurich, valuing the company at 5.1 billion Swiss francs ($5.6 billion). 

Uponor said May 16 it’s assessing “strategic alternatives” after receiving “indications of interest from other parties in relation to potential strategic transactions,” without disclosing names. That followed a hostile takeover bid last month from Aliaxis, a Brussels-based building materials company, that was spurned by Uponor’s board and largest shareholder. 

Aliaxis unveiled an improved €1.9 billion cash offer for Uponor on Monday, which was also rejected as being too low. The Belgian firm made a first approach in May 2022 and eventually went public with its interest after negotiations failed to lead to an agreement. Uponor reiterated on Monday that it’s holding indicative talks with other interested parties and is currently assessing these rival approaches. 

Georg Fischer makes piping systems for transporting liquids and gas, as well as casting and machining products. Representatives for Uponor and Georg Fischer declined to comment.

(Updates with share move in third paragraph.)

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