LG Electronics agreed to buy Norwegian water heating company OSO Hotwater for an undisclosed sum, accelerating its challenge to rival Samsung Electronics in the fast-growing heating and air conditioning market.
The acquisition of the 93-year-old company gives LG access to Europe’s leading stainless steel water storage technology, which pairs with heat pumps to provide hot water in residential and commercial buildings. Industry estimates value the deal in the hundreds of billions of won range.
OSO recorded sales of 942 million Norwegian kroner ($93.3 million) last year and employs about 260 people across manufacturing facilities in Norway and Sweden. The company holds the top market share in Europe for stainless steel hot water systems, which have gained favor over enamel alternatives due to superior corrosion resistance.
The move follows Samsung’s €1.5 billion ($1.7 billion) acquisition of German HVAC specialist FläktGroup in May, marking an escalating competition between Korea’s tech giants for the lucrative climate control market. Samsung’s deal represented its largest acquisition since purchasing Harman International for $8 billion in 2017.
The global applied HVAC market is projected to grow from $61 billion in 2024 to $99 billion by 2030, driven by artificial intelligence data centers requiring sophisticated cooling systems. European demand for heat pumps has surged as governments push energy efficiency mandates and seek alternatives to Russian gas.
LG’s strategy focuses on bundling its heat pump technology with OSO’s water storage systems to offer complete heating packages. The company established its ES division in late 2024 to pursue what it calls a “3B strategy” – building internal capabilities, borrowing expertise, and buying through acquisitions.
Unlike Samsung’s emphasis on data center cooling, LG targets residential and smaller commercial applications where integrated water heating remains essential for customer satisfaction.
