Why Is GE Vernova Stock Surging Wednesday? - GE Vernova (NYSE:GEV)

GE Vernova Inc. (NYSE:GEV) shares are trading higher premarket on Wednesday after the company disclosed that it will acquire the remaining 50% stake in Prolec GE, its joint venture with Xignux, for $5.275 billion.

Prolec GE is a transformer manufacturer that was formed in 1995 as a joint venture between Xignux and GE. This acquisition fully consolidates the company after 30 years.

Recent Prolec GE capacity expansion and innovation investments exceed $300 million in the U.S. and Mexico, including a recently announced $140 million investment and the creation of 330 new jobs over the next three years in Goldsboro, NC.

Also Read: Verizon, GE Vernova Launch Wireless Platform To Help Modernize America’s Grid

Financing and Closing Details

As per the deal, GE Vernova will finance the acquisition equally with cash and debt.

As of the end of the second quarter, GE Vernova had $7.9 billion in cash.

The deal is expected to close by mid-2026, pending regulatory approvals.

Strategic Rationale and Electrification Focus

The deal is expected to boost GE Vernova’s fastest-growing Electrification segment by strengthening its North American presence amid surging demand for advanced grid technologies.

The acquisition also strengthens GE Vernova’s capacity to serve customers worldwide as electricity demand rises, driven by data center growth and new policies supporting critical grid and electrification infrastructure.