GE is forming an alliance with China’s XD Electric Group in a deal that combines the US conglomerate’s electrical grid solutions and distribution capabilities with the Shanghai-listed firm’s equipment technology and large home market.
The global partnership has two aspects. GE will pay Rmb3.38 billion $535 million for a 15% stake in the Xian-based manufacturer of electricity transformers and breakers, and will also form a joint venture with XD to develop transmission and distribution, and automation solutions.
“The transaction is a blueprint for future link-ups between multinationals that want to gain access to a vast and growing market, and Chinese companies that are moving up the...
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