A Chinese company has agreed to buy out the U.S. Farmers Electric Cooperative, the world’s largest, for about $2.3 billion.
China’s State Administration of Industry and Information Technology (SAIT) said on Tuesday the purchase of the cooperative by China’s Jackson Energy will help it boost domestic production and export markets.
It will help Jackson to strengthen its position in the global market.
Jackson is the largest co-op operator in the world.
It has about 2,500 workers, including more than 400 on its U.K. operations.
It has also invested about $1 billion in the Shanghai-based joint venture of Chinese-owned Sifang Investment and Chinese-controlled Fosun, SAIT said.SAIT said in a statement that it was a result of an agreement between Jackson and Fosund.
“The purchase of Fosung will help to increase China’s production capacity, enhance the Chinese manufacturing capabilities and increase domestic production.
This will be an excellent way to boost the Chinese economy, boost domestic living standards and create new jobs,” the statement said.
Jackson, based in the U and Wales, has been expanding its operations in China.
The U.k.-based firm employs about 1,000 workers in China and has about 100 employees in China in operations in the country.
Jacksons first Chinese purchase was for about a third of its workforce in 2007, when it bought the operation of the British-based Sifeng Group from China’s Anbang Insurance Co.
JackSON is owned by Chinese state-owned China State Grid Technology Co., which is the main owner of Sifangs electric power grid, the statement added.
The joint venture was formed in 2009 to produce and sell energy from Chinese-made nuclear plants, it said.
It operates four nuclear power plants in the United States and Japan.
Jack Sifu, a Shanghai-born businessman, said the new purchase was “a big deal.”
“This will help us expand the scale of our operations in Shanghai,” Sifan said.
He said it would give him access to more workers and boost his profits.
Jack’s U.C. Berkeley professor of energy economics, Peter Czuchry, said he was surprised to see Jackson purchase the cooperative.
“Jackson’s purchase of this cooperative will create the largest U..
S.-based cooperative in the history of the United State,” he said.
“I think that the Jackson deal represents a great boost to the U’s energy security.”