General Electric (GE) and XD Electric Group formed a partnership that combines GE’s power grid automation capabilities with XD Electric’s portfolio of high-voltage power equipment.
The partnership was originally announced in May 2012. GE said the partnership would expand GE’s capabilities as a provider of transmission and distribution (T&D) solutions.
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 with XD to offer customers in China GE’s localized grid automation equipment and services.
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.
Much of the T&D growth is expected to continue to occur in China, which has been investing heavily over the past decade in T&D technology and infrastructure, according to GE.
Citigroup acted as sole financial advisor to GE on this transaction. Weil, Gotshal & Manges LLP and Fangda Partners are GE’s lead legal advisers.