General Electric confirmed on Monday, May 21, it was unloading the bulk of its transportation business which makes train engines to Wabtec, a US manufacturer of equipment for the rail industry, in a deal valued at about US$11.1 billion.
The deal, flagged to Reuters by sources who asked not to be named on Sunday, is the biggest done by Chief Executive John Flannery since he announced a major overhaul of the US industrial conglomerate late last year.
GE will receive a US$2.9 billion up-front payment in cash and its shareholders will own 50.1% 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 Chief Executive Rafael Santana will become president and CEO of Wabtec’s Freight Segment.
Full Content: Reuters
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