BERLIN: Air conditioner maker Carrier Global Corp is in advanced talks to acquire German industrial manufacturer Viessmann for more than $12 billion, including debt, according to people familiar with the matter.

The cash-and-stock deal could be announced as soon as this week, the sources said. One of the sources said the deal could be announced on Wednesday, adding Carrier is primarily buying Viessmann’s air conditioning division, which includes heating and heat pumps, and accounts for the vast majority of the German company’s business.

The deal for Viessmann is part of a broader strategic overhaul at Carrier, which is separately working with advisors to spin off its fire and security business, the sources said. The sources requested anonymity as these discussions are confidential.

Carrier did not immediately respond to requests for comment. Viessmann declined to comment. Shares of Carrier fell over 7% to $41.8 apiece in the afternoon trading, giving the company a market capitalization of about $35 billion.