Chinese electronic manufacturer Haier Group is set to acquire General Electronic's appliance business for $5.4 Billion. Both companies on Friday released an official statement to announce the acquisition.

This acquisition is seen as a decisive bid by Haier Group to increase its global foothold, specially in US and Europe, where it is still struggling to make a dent in the market share.

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For many years now, Haier has been desperately seeking to increase its global foothold mainly because of the increased competition in China. The electronic market in China is believed to be steadily approaching its saturation point.

Zhang Ruimin, Chairman and CEO of Haier Group, expressed his earnest hope that this acquisition will be a new starting point for both Haier and GE.

"This strategic alliance provides a new starting point for both Haier and GE and I am confident that this partnership will deliver enhanced value to the stakeholders of both companies," he said. "We share common goals that we hope to achieve together: enhancing the value of the Haier and GE brands and developing our employees by encouraging autonomous innovation and cooperation."

The acquisation will be done through Qingdao Haier Co, a Shanghai- listed company, 41 percent owned by Haier. The entire acquisition process will take two to three months and is most likely to be completed by mid 2016.

Haier's acquisition of GE's Appliance Business is third major overseas acquisition by Chinese companies this week. But more importantly, it is the most expensive overseas acquisition by any Chinese electronic company till date -- overtaking Tsinghua Holdings's $3.8 billion acquisition of Western Digital Corp.

Last month, GE's appliance business was almost sold to Sweden-based electronic company Electrolux, but deal fell apart following a protest from  the U.S. Justice Department over 'unfair competitive advantage.'

Market analysts, however, believe that since Haier owns a very marginal market share in US, it won't face any protests from the country's Justice Department.

TagsHaier, GE, Qingdao Haier Co, Haier to Buy GE