General Electric Company (NYSE:GE), China XD partnership sets digital energy sales sailing
General Electric Company (NYSE:GE) announced that its partnership with China XD will help it double the sales of various power-transmission services and products that are part of its digital energy business, and take it to $4B on an annual basis. GE has bought $552.2M (3.38 Billion yuan) worth of 15% stake in the Chinese power equipment maker.
According to the statement, the deal reached completion 15 months after it was first announced. The two companies have also agreed upon forming a joint venture via which grid-automation equipment will be sold in China.
Jeffrey Immelt, the GE CEO has vowed to expand businesses into the emerging markets like China and also expand the company’s profit-share that has been derived from its industrial businesses. There is also a great amount of scope to upgrade the aging transmission infrastructure in Europe and the United States said GE’s power transmission business’ general manager, Bob Turko.
In a telephone interview he said that this particular deal aligns very well with the very heartening growth dynamics that are evident in this segment. This market segment is a massive one and it helps in building a bigger-base for the company’s industrial businesses.
In Tuesday’s trading session, GE stock dipped by 1.82%. The opening price of the shares was $23.36 which touched an intraday high of $23.39 and closed at $23.18. Over 0.11M shares were traded in Tuesday’s session and the average volume of shares traded over 30 days was 32.36M. The company has a market cap of $236.06 million.
GE is a diversified-technology and financial-services company. The services and products that the company offers range from power generation, aircraft engines, and water-processing to consumer and business financing as well as numerous industrial products.