Friday, Precision Castparts Corp. (PCP) said it has acquired a 49% equity interest in Yangzhou Chengde Steel Tube Co. Ltd.
The cash acquisition is expected to be immediately accretive to earnings. Under the equity method of accounting, PCC siad it will report its share of Chengde's income on an Equity in Earnings of Unconsolidated Affiliates line in its income statement. Other financial terms were not disclosed.
"Chengde's founder Zhang Huaide has built a very impressive manufacturing operation, and we are excited to partner with him going forward. The strategic fit of the two companies will provide a long runway for continued earnings growth in PCC's power generation business," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.