Home Daily Blitz Exclusive: GE Nears Deal To Merge Transportation Unit With Wabtec, Sources Say
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Exclusive: GE Nears Deal To Merge Transportation Unit With Wabtec, Sources Say

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The following is an excerpt from Harry Brumpton AND Greg Roumeliotis | May 20, 2018 | ibtimes.com |

General Electric Co ( GE.N ) is nearing a deal to merge its transportation business, which manufactures train engines, with Wabtec Corp ( WAB.N ), a U.S. maker of equipment for the rail industry, two people familiar with the matter said on Sunday.

A deal valuing the combined business at more than $20 billion could be announced as early as this week, the sources said, asking not to be identified because the negotiations are confidential.
It would be the biggest deal thus far to be inked by GE Chief Executive Officer John Flannery, who took over last August with a mandate to slash costs and boost the U.S. industrial conglomerate’s plummeting stock price.

There is always a possibility that the deal talks, which center on using a tax-efficient structure called a Reverse Morris Trust, could collapse at the last minute, the sources cautioned.
GE and Wabtec did not immediately respond to requests for comment.

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