The companies also announced a long-term strategic partnership that will see them cooperate in areas such as industrial internet, healthcare and advance manufacturing.
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Haier, headquartered in the eastern Chinese city of Qingdao, is the world’s biggest appliance maker, with 2014 revenue of $32.6 billion. GE is shifting emphasis from traditional businesses such as appliances, in which it has been a prominent presence for more than a century, to higher-technology areas such as medical equipment and clean energy. Ltd., a publicly traded entity of which Haier owns 41 percent.
In 2008, Haier reportedly held talks with GE to buy the USA firm’s appliance unit, but no deal was reached at the time.
In July past year, the U.S. Justice Department filed a lawsuit to stop the GE-Electrolux deal, claiming that it would shoot up the price of appliances by 5 percent, Reuters reported. The company employs about 12,000 workers globally, 96 percent of whom are based in the United States.
The group’s Qingdao Haier Co. signed an agreement with GE, according to a statement.
Haier will to continue use of the GE Appliances brand and Louisville will remain the headquarters for the business. Both companies will also work together to develop and grow affordable consumer health initiatives in China, according to the statement.
GE had previously agreed to sell the business to Sweden’s Electrolux, but the deal was abandoned after regulators raised antitrust concerns. Electrolux and regulators tried to resolve the dispute, but GE officials anxious that the litigation could drag out for months.
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This story will be updated.
