U.S. investment firm Kohlberg Kravis Roberts (KKR) has agreed to buy a 10 percent share in China's biggest appliance maker Qingdao Haier.
It is KKR's biggest investment in China.
"We welcome the world-class investment firm KKR to become our long-term strategic partner which will help us effectively execute our growth strategies," Qingdao Haier Chairman Mr Liang Haishan said in a statement. "KKR's investment is a strong endorsement of our past achievements and future potential. We believe KKR's global resources, operational expertise and experienced local team will help Qingdao Haier to further strength its market leadership position on a global basis."
KKR will pay $556 million for the stake, which the two companies say will establish a long-term strategic partnership.
"We look forward to fully utilising KKR's global resources and local expertise to assist Qingdao Haier in its next phase of growth by capitalising on the opportunities created by China's continued urbanisation and increasing consumer income trend, while also accelerating its international expansion," said David Liu, Member of KKR and CEO of KKR Greater China.
KKR is a leading global investment firm with $83.5 billion in assets under management.
The transaction is subject to customary regulatory and shareholder approvals.
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