China XD Group in talks to buy GE's Prolec for up to $1 bln-report

HONG KONG Tue May 14, 2013 12:34am EDT

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HONG KONG May 14 (Reuters) - Chinese state-controlled power equipment maker XD Group is in talks to buy General Electric Co's joint venture with Mexico's Xignux SA for up to $1 billion, Bloomberg reported on Tuesday.

GE owns 49.99 percent of the company, Prolec GE, which makes power transformer products. The discussions are at an early stage, the report said.

GE paid $535 million last year for a 15 percent stake in China XD Electric Co Ltd, the nation's biggest maker of transmission and distribution equipment.

Prolec GE has annual sales of about $600 million, the report said, citing people with knowledge of the matter. GE was not immediately available for comment, while XD could not be reached.

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