On October 21, GE Vernova announced it would acquire a 50% stake in transformer manufacturer Prolec GE, which it does not already own, for $5.28 billion. The company stated that this decision is primarily driven by the significant increase in demand for grid equipment, fueled by the artificial intelligence boom. The shares targeted in this acquisition are currently held by joint venture partner Xignux. The transaction will be financed through an equal mix of cash and debt. Subject to regulatory approval, the deal is expected to close by mid-2026. Prolec GE was initially established in 1995 as a joint venture between Xignux and General Electric. As a leading global manufacturer of dielectric liquid-immersed transformers, Prolec GE’s core business includes the design, manufacturing, and sales of transformers and high- and low-voltage components. The company produces products with multiple power ratings and voltage levels and offers complementary solutions such as load tap changer (LTC) training and oil filtration systems. With a 20% market share, it ranks second in the U.S. power transformer market, trailing only Hitachi. As a major global grid equipment supplier, Prolec GE operates seven production facilities worldwide, five of which are located in the United States, and employs approximately 10,000 people globally. Notably, earlier this year, the company announced a $140 million capacity investment plan, which is expected to create 330 new jobs in Goldsboro, North Carolina, over the next three years. This initiative is part of a broader capacity expansion plan totaling over $300 million in the United States and Mexico. Following the acquisition news, GE Vernova’s stock price saw a slight increase in after-hours trading. The company also plans to release its third-quarter financial results on October 22. Currently, as major tech companies and Silicon Valley startups race to expand AI services like ChatGPT, electricity demand in the U.S. is experiencing explosive growth. The U.S. Energy Information Administration predicts that, driven by continued growth in cryptocurrency mining and electricity demand from households and businesses, U.S. power consumption will reach record highs between 2025 and 2026. Commenting on the acquisition, GE Vernova CEO Scott Strazik stated, “This acquisition aligns with our strategic and financial objectives while creating value for customers by strengthening our market presence in North America, where demand for grid equipment is rapidly expanding.” This move further solidifies the company’s position as a leading player serving the growing global grid market. With the rapid rise in demand for grid technologies in North America, the transaction will accelerate the growth of GE Vernova’s fastest-growing "electrification segment" by expanding its operational footprint and service support in the region.
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