General Electric (GE) has entered into an agreement to acquire a 100% stake in Australia-based mining-equipment maker Industrea, for the total consideration of $700m.

The transaction is subject to conditions precedent, including obtaining required regulatory approvals and it is expected to close later in 2012.

Industrea managing director and chief executive officer Robin Levison said, "GE’s resources, technical expertise and global customer relationships are expected to accelerate the growth of Industrea’s businesses, building on the company’s strong reputation for products and services that enhance the safety and productivity of mining companies."

GE has also signed a binding letter of intent (LOI) to acquire a US-based independently owned and operated underground mining equipment maker, Fairchild International, for an undisclosed amount.

Fairchild International president Myrleen Fairchild said, "I’m confident that our people and products will continue to flourish under the leadership of GE for the benefit of our customers."

The transaction is expected to close in the third quarter of 2012.