The logo of USA giant General Electric is shown in Belfort on June 23, 2014.
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GE had previously agreed to sell the business to Sweden’s Electrolux, but the deal was abandoned after regulators raised antitrust concerns.
The transaction has been approved by the boards of directors of GE and Haier and is subject to “customary closing conditions”, including approval by Haier shareholders and regulatory approvals.
“Haier has a good track record of acquisitions and of managing brands”, GE’s chairman and chief executive officer Jeff Immelt said in a news release.
The two companies also announced a long-term strategic partnership to develop projects in industrial Internet, health care and advanced manufacturing.
Haier secured GE Appliances after winning an auction process that began in December. Haier outbid other foreign companies for the Louisville, Kentucky, business unit, and a deal could be announced as soon as Friday, the Journal reported. Electrolux had to pay GE $175 million because the deal failed.
Midea is China’s biggest manufacturer of appliances, with a 17.1 percent share of the nation’s market a year ago, followed by Qingdao Haier, with 7.9 percent, Euromonitor International data showed.
Haier Group owns a 41 percent stake in Qingdao Haier.
For almost 60 years, GE’s Appliance Park has been a fixture of the community and he expects that to continue for decades to come, Crockett said.
This sale follows an attempt by GE to sell its appliance business for $3.3 billion to Electrolux.
The deal is the latest major Chinese acquisition of a USA company, and comes in the same week that Wanda Group, founded by China’s richest man Wang Jianlin, acquired Hollywood studio Legendary Entertainment for $3.5 billion.
“Haier and GE share the same vision, and value innovation, customer service, and developing products of the highest quality”, Zhang Ruimin, Haier CEO, said in a statement.
Haier has limited presence in the United States, hence the acquisition would act complementary to its existing range of products and operations, the person added.
Within his first decade as chairman, he transformed Haier, creating China’s largest appliance maker and becoming the first businessman appointed to China’s Central Committee, one of the Communist Party’s highest decision-making bodies.
William Slaughter, left, and Ronald Griffin work on the GE dishwasher production line at the company’s Appliance Park plant.
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If the deal passes, Haier will maintain the rights to use the GE appliance branding in the U.S. and overseas for 40 years.
