It is reported that GE Healthcare is considering selling its China business, with a valuation potentially reaching several billion dollars
GE Healthcare is considering selling its stake in its business in China, with a valuation potentially reaching several billion dollars. The company is working with advisors to assess the business outlook, and potential transactions are still in the preliminary stages. Due to increased competition from domestic companies, other multinational corporations such as Starbucks and Häagen-Dazs are also considering exiting the Chinese market. GE Healthcare's stock price has fallen 2% this year, and its revenue in the Chinese market is expected to be $2.4 billion in 2024, a decrease of 15% from the previous year
According to the Zhitong Finance APP, informed sources say that GE Healthcare Technologies (GEHC.US) is exploring various options, including the sale of its stake in its Chinese subsidiary. The sources indicate that this American medical technology company has been working with consultants to assess the prospects of the business. They noted that potential transactions could value these Chinese assets at several billion dollars, and these considerations are still in the preliminary stages, with no final decision made regarding the timing and scale of any potential disposals.
Against the backdrop of fierce competition among domestic companies in China, other multinational companies, in addition to GE Healthcare, are also evaluating their options for selling their businesses in China. Domestic companies have developed into seasoned competitors, establishing deep connections with local consumers. Other companies considering exiting their Chinese operations or certain local assets include Starbucks (SBUX.US), Haagen-Dazs under General Mills (GIS.US), Decathlon, and Burger King under Restaurant Brands International (QSR.US).
General Electric divested its medical equipment business in 2023. GE Healthcare's stock price has fallen 2% this year, with the company's valuation at approximately $35 billion. GE Healthcare's products include imaging scans, ultrasound, patient care solutions, and pharmaceutical imaging agents. According to its latest annual report, China is its second-largest market, employing about 7,000 people. GE Healthcare announced that its revenue from the Chinese market for 2024 is projected to be $2.4 billion, a 15% decrease from the previous year. For the three months ending in June, the company reported a further 3% decline in revenue from the Chinese market
