14 January 2016 (Eastern Standard Time), King & Wood Mallesons advise Qingdao Haier Co., Ltd. (Qingdao Haier) (SSE stock code: 600690) on the successfully signing of a stock and asset purchase agreement with General Electric (GE). According to the agreement, Qingdao Haier will acquire GE’s appliances business (GE Appliances), including relevant shares and assets, for US$5.4 billion. The transaction signifies the beginning of a global strategic partnership between Haier Group and GE, and will further increase Qingdao Haier’s global competitiveness.

As the white electric resource integration platform of Haier Group, Qingdao Haier is a world renowned brand and a global leader in the white electric industry. GE Appliances is a leading homes appliances company in North America, and it has also built world-class logistics and distribution capabilities as well as strong retail networks in the U.S.. The transaction will bring forth mutual benefits to both companies in the long-term. This transaction is an important investment for Haier to expand its U.S. presence and will accelerate its growth in the Western hemisphere. For GE Appliances, it will provide access to the Chinese market and opportunities for further international growth.

This transaction is the largest outbound transaction of any Chinese public listed company in the non-financial sector.  It is conducted under a highly competitive environment with a tight time schedule. It will serve as a good example of Chinese companies going global and winning in the international market.  This transaction is also a crucial component of the overall strategic partnership between the Haier Group and GE, which allows cooperation in the industrial internet, healthcare and advanced manufacturing industries and will further enhance their respective global competitiveness.

King & Wood Mallesons act as the legal counsel to Haier, providing legal advice in all aspects of the acquisition. The KWM legal team was led by partners Xu Ping, our team includes Song Yanyan, He Wei, Li Qiang, Liu Cheng and Lv Yinghao.  Prior to this transaction, KWM has acted for Haier in its other major cross-border transactions, including Qingdao Haier’s issuance of shares to KKR, and restructuring of its global white goods business.

This transaction is still subject to shareholders approval of Qingdao Haier, regulatory filings in China and anti-trust clearances in the relevant markets. This transaction is expected to be closed in the second quarter of 2016.  KWM team will continue to provide legal support to Haier until the successful closing of this transaction.