The ``GE of China'' — Haier Group — is buying a unit of GE in the United States to bolster its appliance business in that market.

Haier, which makes refrigerators and other home appliances, agreed to pay General Electric Co $5.4 billion in cash for its appliance unit. The state-owned Haier tried to buy the unit in 2008, but the deal was canceled because of the global recession.

The deal announced on Jan 15 comes one month after GE had attempted to sell the business to Sweden’s Electrolux AB for $3.3 billion, but that was scuttled when US antitrust authorities sued to block it. GE is selling to focus on technology-driven businesses such as medical equipment and jet engines.

“Haier has been referring to itself as the GE of China,” Steven Winoker, an analyst with Sanford C. Bernstein in New York, told China Daily in an interview. “This will enable them to drive their global brand ambitions and also get a larger share of the US market.”

Under the agreement, Haier can use the GE brand name for 40 years, including in China. GE Appliances will remain headquartered in Louisville and the business will continue to be operated independently under the direction of a local board with the participation of GE's current senior management team, who will manage the business.

Haier is committed to investing in the continued growth of the US business, the Chinese company said in a statement. Haier has a refrigerator factory in Camden, South Carolina, a research facility in Evansville, Indiana, and a plant in Mexico, all of which the company plans to keep open, according to a company spokesman.

Haier is based in the eastern Chinese city of Qingdao. The company’s market share for major home appliances in China is 29.8 percent, but in the US it is 5.6 percent, according to market research firm Euromonitor. It reported 2014 revenue of $32.6 billion. GE Appliances reported revenue of $5.9 billion last year.

GE said the deal values its appliance business at 10 times the last 12 months earnings before interest, taxes, depreciation, and amortization (EBITDA).

"This is the chance of a life-time for Haier to become big outside China and specifically US, hence they are willing to pay this very high price tag," Kepler Cheuvreux analyst Johan Eliason told Reuters.

The so-called white-goods market of home appliances in the US is dominated by Whirlpool Corp, Electrolux and GE.

The proposed agreement would be the largest acquisition of an American business by a Chinese firm, surpassing the 2013 purchase of Smithfield Foods Inc by Shuanghui International Holdings Ltd, according to Dealogic.

“I think it is highly unlikely there will be antitrust issues given Haier’s relatively small share of the US appliance market,” said Winoker. “This is a very different situation from Electrolux.”

Haier and GE also agreed to form a strategic partnership to cooperate in areas such as the Internet, health care, and advanced manufacturing.

"This strategic alliance provides a new starting point for Haier and GE and I am confident that this partnership will deliver enhanced value to the stakeholders of both companies,” Zhang Ruimin, chairman and CEO of Haier said in a statement.

“Haier has a stated focus to grow in the US, build their manufacturing presence here, and to invest further in the business. GE Appliances provides Haier with great products, state-of-the-art manufacturing facilities, and a talented team,” said GE CEO Jeff Immelt.

The acquisition includes GE Appliances' 48.4 percent stake in Mabe, a Mexican appliance company that has operated a joint venture and has had a sourcing relationship with GE Appliances for 28 years.