General Electric to buy a 15 % stake in China XD Electric for $535 mn

General Electric Co (GE) will buy a 15-per cent stake in China XD Electric Group for about $535 million, giving the multinational conglomerate an entry into China's vast electrical infrastructure market.

GE and China XD have also agreed to form a 41:59 per cent joint venture to distribute GE's electrical grid solutions to XD's local customers.

GE will get a board seat on XD Electric as part of its investment in the Xi'an province-based company.

Founded in 1986, Shanghai-listed China XD Electric is one of China's largest manufacturers of electricity transmission and distribution equipment.

The company specialises in manufacturing equipment for electrical transmission and distribution systems, such as high voltage substations, DC voltage lines, transformers, and gas-insulated switchgear.

XD Electric exports products to over 40 countries and regions throughout Europe, the US, Asia and Africa.