$5.4B Haier Acquisition Awaits Regulators
The deal with Haier could close in the middle of the year.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowConnecticut-based General Electric Co. (NYSE: GE) has announced an agreement to sell off its appliances business to China-based Qingdao Haier Co. Ltd. The deal is valued at $5.4 billion, which is more than the $3.3 billion offered previously by Electrolux for the unit headquartered in Louisville.
Last month, GE and Electrolux abandoned a deal amid U.S. regulatory concerns.
More than 6,000 employees work at the GE division that is located across the Ohio River from Indiana. The acquisition, which has been approved by the boards of both companies, includes provisions to keep the HQ in Louisville. It also calls for GE to maintain use of the GE Appliances brand as part of a long-term agreement.
GE Chairman and CEO Jeff Immelt says "we are pleased to be selling our Appliances business to Haier, which is committed to growing the business globally. GE Appliances is performing well and there was significant interest from potential buyers, helping drive a good deal which will benefit our investors, customers and employees.”
Haier has an existing presence in the Hoosier State. Mid-2015, the company cut the ribbon on its North American Technology and Design Center of Excellence in Evansville. The facility includes 50 workers and officials say it will have a $10 million annual economic impact.
You can connect to more about the acquisition by clicking here.
Editor’s Note: A previous version incorrectly identified the proposed Electrolux offer as $5.3 billion.
