The companies are discussing a potential transaction that could come together as soon as the coming weeks, the people said, asking not to be identified because the information is private.

Modine’s shares closed regular trading Thursday in New York at US$106.10, giving the company a market value of about US$5.6 billion. The stock soared to more than US$135 in late trading, a gain of 28%.

The company’s shares had fallen about 15% since Nov 3, when it reported quarterly results that underwhelmed investors. No final decision has been made and the talks could still fall apart, the people said. Another suitor could also emerge, they added.

The discussions underscore how M&A is picking up around companies that cater to the booming AI market. US companies and their overseas rivals have stepped up efforts to capture the growth opportunity coming from data centres through bigger investments and dealmaking. Among them are Samsung’s Asian rivals Daikin Industries Ltd and LG Electronics Inc, as well as US-based Vertiv Holdings Co. 

Representatives for Samsung and Modine declined to comment. 

Based in Racine, Wisconsin, Modine makes heavy duty cooling and heating systems for large commercial buildings and industrial machines, with its fastest-growing business serving hyperscalers that build data centres. In October, the company spun off its automotive business to focus on its thermal-management operations. 

Samsung, with a market value of more than US$900 billion, is one of the largest technology and electronics companies in the world. The Suwon, South Korea-based company’s products include smartphones, televisions, home appliances, thermal solutions and computer memory chips. 

While a Modine takeover would be bolder in magnitude, Samsung has been bolstering its thermal solutions offering to data centres through international acquisitions. It purchased Germany-based FläktGroup Holding GmbH for €1.5 billion (US$1.7 billion) last year. 

Uploaded by Liza Shireen Koshy