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