Power Shift in the Grid Market

GE Vernova takes full control of Prolec GE to strengthen North America’s grid supply chain

20 Nov 2025

GE Vernova has agreed a $5.28bn deal to acquire full ownership of Prolec GE, underscoring rising competition for transformers and other grid hardware as utilities face growing demand from data centres, electric vehicles and renewable energy. The transaction, announced on October 21 2025 and expected to close by mid-2026, will bring an end to the company’s long-running joint venture with Mexico’s Xignux.

GE Vernova already held a 50 per cent stake in Prolec GE. Purchasing the remainder gives the group closer access to one of North America’s largest transformer manufacturing networks. Prolec GE operates facilities in the US and Mexico and has invested more than $300mn in recent expansions, including a North Carolina plant that added 330 jobs. The company has said these investments reflect a push to increase capacity rather than the valuation of the deal itself.

Two trends are driving consolidation across the grid equipment sector. Utilities are replacing ageing networks at a faster pace, and manufacturers are seeking more control over design, production and service as demand fluctuates. GE Vernova chief executive Scott Strazik said the acquisition would strengthen the company’s regional presence and support longer-term growth plans.

Full ownership gives GE Vernova direct oversight of Prolec’s factories, supply chains and intellectual property. The group expects this to integrate research and production and improve coordination between US and Mexican operations. Utilities hope the move will shorten delivery times for equipment that has often been in short supply.

The outlook for grid hardware points to continued expansion as digitalisation and decentralised energy place new pressures on transmission and distribution systems. Larger companies with scale and established manufacturing bases are viewed as well positioned to lead this shift.

Regulators are likely to review the competitive effects of the deal, and combining complex production systems may pose challenges. Smaller manufacturers could face rising pressure as larger groups consolidate more of the supply chain.

Further partnerships and closer supplier networks are expected as the sector adjusts to sustained growth. The Prolec GE transaction signals how companies are reorganising to meet a heavier load on North America’s power infrastructure.