Qingdao-based Haier Group, a major manufacturer of household appliances, has agreed to buy a unit of General Electric's appliances business in the United States for $5.4 billion in cash.

The deal will be completed in the second quarter, pending regulatory approval, and under the agreement, Haier can use the GE brand name for 40 years, including in China.

The proposed agreement would be the China's largest-ever acquisition of an overseas electronics company.

The Chinese home appliances market is almost saturated, so domestic makers are looking overseas to find new business growth points.