General Electric has agreed to sell its appliance business to China's Qingdao Haier Co Ltd for $5.4 billion in cash, a month after abandoning a deal with Sweden's Electrolux. The transaction includes GE Appliances' 48.4 percent stake in Mabe, a Mexican appliance company that has operated a joint venture and has had a sourcing relationship with GE Appliances for 28 years, Haier said.

The deal will boost Haier's presence in the United States. As usually, it is subject to customary regulatory filings in China and antitrust approvals in the United States, Mexico and Argentina.

Haier said it would continue to use the GE Appliances brand and retain its headquarters in Louisville, Kentucky along with its current management team, the companies said.

A similar $3.3 billion-proposed deal with Electrolux had previously fell through following opposition from U.S. antitrust regulators.