Haier Electronics Group Co will buy the water heater and remaining washing machine businesses from parent Haier Group Corp, the Chinese mainland's largest home appliance maker, for HK$900 million (US$116 million).

Haier Electronics will pay for the assets by issuing HK$240 million worth of new shares to its parent, it said in a statement to the Hong Kong stock exchange, according to Bloomberg News. It will also waive the US$420 million sale price of its mobile handset business, which Haier Group bought in June, and forgive HK$60 million in debt.

The purchase is part of Haier Group's aim to turn its Hong Kong-listed unit into a flagship for its home-appliance businesses. Qingdao-based Haier Group, which sells products in the United States through Wal-Mart Stores Inc and Home Depot Inc, last year dropped out of a three-way contest to buy No. 3 US appliance maker Maytag Corp after being outbid by rival Whirlpool Corp.

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