China's Haier buying GE appliance unit for $5.4 billion

January 15, 2016

Haier Group, the world's biggest appliance maker, is buying General Electric Co.'s appliance business for $5.4 billion to expand its global presence.

The acquisition announced Friday comes as Haier tries to shed its image as a low-cost brand and move into premium market segments. GE is shifting 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. 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 percent.

GE Appliances reported $5.9 billion in 2014 revenue. It has 12,000 employees, 96 percent 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.

Explore further: Taiwan's AU Optronics in ventures with China's Haier, TCL

Related Stories

Google launches cheapest Chromebooks yet

March 31, 2015

Google is unveiling its cheapest Chromebook laptops yet, two versions priced at $149 aimed at undercutting Microsoft's Windows franchise and gaining an even stronger hold in school and overseas markets.

GE to acquire Thermo Fisher units for $1.06 bn

January 6, 2014

General Electric plans to acquire cell research divisions from Thermo Fischer Scientific for $1.06 billion to boost the conglomerate's health unit, the companies announced Monday.

General Electric to move headquarters to Boston

January 13, 2016

General Electric announced Wednesday it will move its headquarters to Boston, leaving the sprawling suburban Connecticut campus it has called home over the past four decades for a technology-rich city it says better fits ...

Recommended for you

Wall-jumping robot is most vertically agile ever built

December 6, 2016

Roboticists at UC Berkeley have designed a small robot that can leap into the air and then spring off a wall, or perform multiple vertical jumps in a row, resulting in the highest robotic vertical jumping agility ever recorded. ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.