By Kane Wu (Reuters) -U.S. medical device maker GE Healthcare is working with advisers to explore options for its China unit including an outright sale, a person with knowledge of the discussions said on Friday. It is also looking at finding a partner in China or selling a stake in the unit, said the person […]
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GE Healthcare exploring sale of China unit, source says
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By Kane Wu
(Reuters) -U.S. medical device maker GE Healthcare is working with advisers to explore options for its China unit including an outright sale, a person with knowledge of the discussions said on Friday.
It is also looking at finding a partner in China or selling a stake in the unit, said the person who declined to be identified as the information was confidential.
The China unit would likely be valued in the billions of dollars but discussions are still at early stages and a more precise number is hard to pinpoint, the person said.
Bloomberg first reported on Thursday that GE Healthcare is exploring options for its China unit including the sale of a stake, citing people familiar with the matter.
GE Healthcare, which has a market value of some $34 billion, did not immediately respond to a request for comment on Friday about whether it may sell the entire unit.
A spokesperson said on Thursday the company does not respond to market rumors, adding that it remains committed to supporting patients in China.
GE Healthcare makes CT and MRI scanners as well as range of other devices in China and has six manufacturing bases there. It saw revenue from the region decline by about 15% in 2024, hurt by tariffs.
The company’s chief financial officer said in July that GE will continue to work with its suppliers to move capacity to more tariff-friendly geographies.
Political tensions, fierce domestic competition as well as China’s slowing economic growth are eroding the confidence of U.S. companies operating there.
Only 41% of U.S. firms were optimistic about their five-year China business outlook, a drop of six percentage points from last year, according to the survey published this month by the American Chamber of Commerce in Shanghai. This was the weakest level of optimism reported since the survey was introduced in 1999.
U.S. drugmaker Bristol Myers Squibb said on Tuesday it has signed an agreement to sell its 60% stake in a pharmaceutical joint venture in China.
(Reporting by Kane Wu; Additional reporting by Padmanabhan Ananthan in Bengaluru and Andrew Silver in Shanghai; Editing by Edwina Gibbs)