Business
The two companies said they also agreed to form a strategic partnership to cooperate in areas such as the internet, healthcare, and advanced manufacturing
Updated : Mar 21, 2018, 02:55 AM IST
Haier Group, the world's biggest appliance maker, is buying General Electric Co's appliance business for $5.4 billion (Rs 36,201.6 crore) to expand its global presence.
The acquisition announced on Friday comes as Haier tries to shed its image as a low-cost brand and move into premium market segments. GE has shifted emphasis from traditional businesses to higher-technology, higher-profit areas such as medical equipment.
The two companies said they also agreed to form a strategic partnership to cooperate in areas such as the internet, healthcare, and advanced manufacturing.
Haier, headquartered in the eastern Chinese city of Qingdao, reported 2014 revenue of $32.6 billion (Rs 2.18 lakh crore). It said the GE acquisition would be carried out by its unit Qingdao Haier Co, Ltd, a publicly traded entity of which Haier owns 41%.
GE Appliances reported $5.9 billion (Rs 39,553.6 crore) in 2014 revenue.
It has 12,000 employees, 96% of them in the United States.
"This strategic alliance provides a new starting point for both Haier and GE and I am confident that this partnership will deliver enhanced value to the stakeholders of both companies," said the Haier Group chairman, Zhang Ruimin, in a statement.