Merge of GE and Wabtec
In a deal valued at USD 11,1 billion
GE and its shareholders will still own 50.1 percent of the combined operations, while Wabtec has bought 49.9 percent of the GEs railway business.
The deal furthers GEs efforts to streamline operations and reduce the complexity that he blames for deepening the company’s problems. GEs' new CEO, John Flannery, has pledged to cut costs, sell at least USD 20 billion in assets and refocus on key markets, such as aviation and energy.
The merger transforms rail-equipment maker Wabtec, which will roughly double its annual revenue by combining with one of the world’s largest manufacturers of freight locomotives.
Wabtec, which builds locomotives and offers services and other products to the freight-rail and passenger-transit markets, generated USD 3.9 billion in sales last year. The company will keep its headquarters, and Chairman Albert Neupaver was reappointed executive chairman. Rafael Santana, currently CEO of GE Transportation, will run Wabtec’s freight segment.
Created Tuesday, May 22, 2018