Haier announced a deal with General Electric. According to the press release published on the Chinese company’s website, Qingdao Haier, a Shanghai stock exchange listed company that is 41% owned by Haier, will acquire GE Appliances. Qingdao Haier acquired all overseas operations of Haier Group in June 2015, as part of the expansion of Haier’s global business. “GE Appliances – explained Haier – will remain headquartered in Louisville, Kentucky. The business will continue to be operated independently under the direction of a local board with the participation of GE’s current senior management team, who will guide the strategy and operations of the business. Haier is committed to investing in the continued growth of the U.S. business”. As part of the acquisition, GE will receive a cash consideration from Qingdao Haier of $5.4 billion. “The transaction – said Haier – is subject to customary regulatory filings in China and customary anti-trust clearances in relevant countries. In addition, the transaction is subject to approval by two-thirds of Qingdao Haier shareholders present to vote. Haier Group and KKR, who together own 50.8% of Qingdao Haier shares outstanding, are fully supportive of the transaction”.
