General Electric nearing deal with Wabtec to merge train manufacturing business
General Electric and Wabtec Corp are nearing a USD 20 billion deal to merge GE’s train engines manufacturing business.
- Country:
- United States
General Electric and Wabtec Corp are nearing a USD 20 billion deal to merge GE’s train engines manufacturing business with the US producer of equipment for the rail industry, Reuters reported late on Sunday.
The deal, which will take the combined value of the business at more than USD 20 billion, will be the biggest deal under GE CEO, John Flannery, who took over in August 2017. The deal can be announced as early as this week.
The transportation business of GE manufactures freight and passenger trains, marine diesel engines and mining equipment. While Wabtec manufactures equipment for locomotives, freight cars and passenger transit vehicles. Wabtec has a market cap of USD 9.2 billion.
GE’s stock has lost about half its value in the last year, and the company has been working with activist hedge fund Trian Fund Management LP, which sits on its board of directors, to turn the business around.
Flannery told GE’s annual shareholder meeting last month that the company is "keenly aware of the pain" caused by its poor performance and dividend cut last year. Executives are trying to turn around the ailing power and oil and gas businesses, he told shareholders, adding that there is evidence of "green shoots" of improvement.
(With inputs from Reuters)
ALSO READ
COLUMN-Europe gets lucky with a mild, windy winter: Kemp
UnitedHealth unit Change Healthcare's pharmacy network back online
PRESS DIGEST-Financial Times - March 14
FEATURE-Serbian LGBTQ+ couples hope Greek marriage law kick-starts change
ICC has no authority to probe Philippines, Marcos tells Germany's Scholz