GE moves to merge transportation unit with Wabtec in USD 11.1 bln deal

Newsroom 21/05/2018 | 17:24

General Electric has announced that it was unloading the bulk of its transportation business which makes train engines to Wabtec Corp, a US manufacturer of equipment for the rail industry.

The deal is valued at USD 11.1 billion and is expected to close in early 2019, according to Reuters.

GE will receive a USD 2.9 billion up-front payment in cash and its shareholders will own 50.1 percent of the combined company, while Wabtec shareholders will own the rest, the companies said in a statement.

Wabtec chief executive Raymond T. Betler will remain president and CEO of the merged company while its chairman, Albert J. Neupaver has been re-appointed executive chairman. GE Transportation head Rafael Santana will become president and CEO of Wabtec’s Freight Segment.

The resulting company will have approximately USD 8 billion in revenues, the companies said.