ATLANTA – GE and XD Electric Group has announced the official formation of a new global partnership combining GE’s world-class grid automation capabilities and global energy presence with XD Electric’s comprehensive portfolio of high-voltage (HV) power equipment. GE now owns 15 percent of XD Electric and holds one board seat. Another component of the partnership includes the formation of a joint venture (JV) with XD to offer customers in China GE’s localized grid automation equipment and services.
Originally announced in May 2012, the partnership expands GE’s industry capabilities as a leading provider of transmission and distribution (T&D) solutions and creates a new global competitor to provide customers with state of the art HV technology offerings in a $100 billion industry.
Through the partnership, GE and XD will offer end-to-end T&D solutions to meet the growing demand for electricity in emerging economies where demographic and urbanization trends are straining the current grid infrastructure; as well as provide customers in developed countries with HV solutions to modernize their aging grids with more efficient and reliable electrical power systems. The combined portfolios also will support the rapid electrification and productivity requirements demanded by energy-intensive industries like oil and gas, mining and petrochemicals.
“Our investment in XD Electric is core to our long-term strategy to build a world-class T&D franchise and become a leading provider of grid modernization solutions. By combining the strengths of both GE and XD Electric, we will offer full-scope solutions to customers in the rapidly growing T&D industry,” said Dan Janki, president and CEO of GE Energy Management. “The partnership will enhance our ability to compete in fast-growing regions such as China where XD Electric has a strong presence.”
Citigroup acted as sole financial advisor to GE on this transaction. Weil, Gotshal & Manges LLP and Fangda Partners are GE’s lead legal advisers.Tagged with tED