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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.