Haier Group the maker of home appliances based in China has agreed to acquire General Electric s appliance business for a price of $5.4 billion.
This acquisition was announced in a prepared statement on Friday and comes as China-based Haier the largest maker of home appliance in the world, attempts to transform into a premium appliance brand.
Jeff Immelt the CEO and chairman at GE said that Haier was committed to expanding it business globally.
Immelt said that GE Appliance was performing very well and there is a significant amount of interest from possible buyers, helping to drive a strong deal, which benefits GE investors, employees and customers.
Haier, said Immelt, has begun to focus on growth in the U.S., with plans to build plants in the country and to invest if more in the business.
GE has shifted emphasis from its traditional businesses like appliances to areas of higher technology such as clean energy and medical equipment.
The two companies agreed to also form a partnership to help cooperate in specific areas such as healthcare, internet and manufacturing.
The two said this sale would be subject to antitrust and regulatory approves within both companies.
GE Appliances is to remain with Louisville, Kentucky headquarters said a statement from the company.
GE Appliance posted $5.9 billion in revenue for 2014 and has over 12,000 employees of which 96% are in the U.S.
Haier Group CEO and Chairman Zhang Ruimin said both companies share a common vision. He added that his company Haier was committed to investing within the U.S.
The purchase is the third in a series of foreign acquisitions by Chinese buyers this week.
On Tuesday, Wanda Group the huge conglomerate said it was acquiring the Hollywood Legendary for $3.5 billion. On the previous day, a chemical company that is state-owned announced it was buying a German manufacturer for over $1 billion.