General Electric has agreed to sell its appliance unit to China’s Qingdao Haier for $4.5bn, as the Shanghai-listed company looks to expand its global presence. In a statement released earlier this month, the two companies said that they would be jointly looking to increase their market share of the global healthcare, advanced manufacturing and industrial sectors.
41% of Qingdao Haier is owned by the Chinese multinational consumer electronics and home appliances Haier Group and the deal will help the parent company sell refrigerators, washing machines and other larger appliances overseas after years of struggling to gain a stronger foothold in the US and elsewhere. Haier said it had also bought the rights to use the GE brand for appliances for 40 years.
The acquisition will also enable GE to focus on its industrial business—including jet engines and power turbines—instead of washing machines or even finance.
“Haier has a good track record of acquisitions and of managing brands,” GE Chairman and Chief Executive Jeff Immelt said in a news release. “It has a stated focus to grow in the US, build their manufacturing presence here, and to invest further in the business.”
Haier agrees to pay $4.5bn for GE appliance unit in global drive
Source: wsj