Wabtec closing in on $11.1bn GE Transportation deal
General Electric (GE) is allegedly close to completing a deal to sell its transportation business to US rail manufacturing company Wabtec in a deal reported valued at $11.1bn.
Discussions between the two companies were first rumored at the end of April, with the latest reports suggesting that talks of a merger are in advanced stages.
GE has been looking to sell the division as part of its broader streamlining initiative that was announced by CEO John Flanney after he took over in August as the company looks to cut costs and focus more heavily on driving its core aviation, healthcare and power businesses.
Wabtec, or Westinghouse Air Brake Technologies Corporation, currently has a market capitalization of $9.2bn in the rail and transit industry, whilst GE Transportation generated $4.7bn in annual revenues in 2017.
GE will hope that the sale will correct its declining investor confidence, having seen its stock price fall dramatically within the past year.