Haier to buy GE appliance unit

China’s Haier Group agreed to buy General Electric (GE) appliance business for $5.4 Billion. This will be the country biggest acquisition of an overseas electronics company. Buying a century old business that makes $8500 refrigerators from the likes of GE would underscore the rise of a Chinese company once known for making cheap fridge for college dormitories.

It also highlights Haier global ambitions as the acquisition would help the company expand in the US, one the markets it is trying to focus on besides Europe and Japan. This acquisition surpasses state backed Tsinghua Holding plans for a $3.8 Billion investment in Western Digital Corp announced last year and Lenovo Group $2.8 Billion acquisition of Motorola Mobility Group in 2014.

Midea is China biggest manufacturer of appliances with a 17% share of the country market in 2015 followed by Qingdao Haier with 7.9% Euromonitor International Data show. Haier had a 11% share of the US appliance market last year. GE and Haier will also cooperate in industrial internet, healthcare and advanced manufacturing. Both companies will also work together to develop and grow affordable consumer health initiatives in China. 

Panasonic buys Hussmann

Japanese electronics maker Panasonic Corp. is buying Bridgeton based refrigeration firm Hussmann for $1.5 Billion in a deal. It will leverage Panasonic technology and help it break into the US food distribution industry.

Panasonic like several Japanese peers has been moving away from unprofitable smartphones and plasma television sets, focusing instead on higher margin products, such as high end cold storage, LED lighting and remote monitoring. Panasonic will buy full control of Hussmann from private equity firm Clayton, Dubilier & Rice and industrial group Ingersoll Rand.

Panasonic has said it is targeting 2.5 trillion yen of sales from its offerings for businesses rather than consumers, in 2018, 300 Billion of which will come from food distribution. To date, it has mostly been present in Asia, and has sought ways to break into the United States, the industry largest market. Hussmann, which will become a fully owned subsidiary of Panasonic, has a leading share in the US market, manufacturing and maintaining refrigerated and freezer display cases.