The company of the former chairman of the Hungarian unit of General Electric (GE), Jörg Bauer, has agreed to buy GEʼs lighting business in Europe, the Middle East, Africa and Turkey, as well as its global automotive lighting business, GE announced on Wednesday. The sides did not reveal the transaction price.
The transaction includes GEʼs five plants in Hungary, regional sales offices and other properties. The company of Bauer, a German national who headed GE in Hungary until December 2017, will also take over more than 4,000 GE staff, most of whom work in Hungary.
The transaction is expected to be closed, in several steps, by the middle of 2018. However, Bauerʼs company could take over the Hungarian bases by early April, according to a report by Hungarian news agency MTI.
The business will continue to operate under the name Tungsram Group. GE acquired Hungarian light bulb maker Tungsram in 1989.
Magyar Eximbank will continue to support the businessʼs operation with credit after the change in ownership, according to the announcement.
About 99% of the lighting businessʼs output in Hungary is exported, noted MTI.