your password has been reset successfully, Please login again.

General Electronic will combine transport unit with Wabtec

General Electronic will receive $2.9 billion in cash and 50.1 percent stake
BY BEx Bureau
BusinessEx
May 22, 2018

General Electric will combine its locomotive unit with Wabtec, who makes passenger and freight locomotives. The deal closed at $ 11.1 billion on Monday. This deal is one of the biggest step taken by GE Chief Executive John Flannery since he announced a major overhaul of the U.SU.S. industrial conglomerate late last year.

GE will take a 50.1 percent stake in the combined company as part of its deal with Wabtec, which traces its roots to 1869 and is worth about $9bn.The deal is tax-free for GE and Wabtec shareholders because it is structured as a so-called Reverse Morris Trust, with GE spinning off the transportation unit and simultaneously merging it with Wabtec.

The 11.1 billion deal includesa $1.1 billion net tax benefit accruing to the combined company, GE and Wabtec said. The equity value of the company combining both's transportation business will be more than $20 billion.The resulting company will have approximately $8 billion in revenues, with 27,000 employees across 50 countries, the companies said. The deal is expected to close in early 2019.

Wabtec chief executive Raymond Betler will remain president and chief executive of the merged company while its chairman,Albert Neupaver, has been reappointed executive chairman.

GE has face shortage of cash because of the weakness ofits power equipment division and its operations serving the oil and gas industry, forcing it to cut its dividend last year and selling can help in raising cash.

Please add your Comment
SIMILAR News
June 22, 2018
He may be still eligible to get about 6.95 million dollar in deferred compensation, retirement payme ...More
By Sanjana Surbhi
June 22, 2018
The latest funding, led by Naspers and billionaire Yuri Milner’s DST Global, values Swiggy at roughl ...More
By Sanjana Surbhi
June 22, 2018
Mittal was the third business leader from India in the history of ICC to be appointed as the Chairma ...More
By Sanjana Surbhi
June 22, 2018
Nokia has selected HCL Technologies as part of an important effort of streamlining Nokia’s outsource ...More
By Sanjana Surbhi
June 13, 2018
It announced in April to bring its stake to 21 percent ...More
By Sanjana Surbhi
June 13, 2018
The fund plans to invest in seven to eight startups this year ...More
By Sanjana Surbhi
June 12, 2018
About 80% of V-Mart’s stores are located in cities with a population below one million ...More
By Sanjana Surbhi
June 08, 2018
Sunil Sood has been the MD and CEO of Vodafone India since April 2015 ...More
By Sanjana Surbhi
June 08, 2018
Reliance is set to become one of the largest non-conventional gas producers in India through the pro ...More
By Sanjana Surbhi
June 01, 2018
Sequoia India, which first invested in Pine Labs in 2009, remains the company’s largest shareholder ...More
By Sanjana Surbhi
June 01, 2018
Maiya initially raised funds from Ascent Capital and later from Peepul Capital ...More
By Sanjana Surbhi
May 31, 2018
WeWork operates nearly 1-million-sqft space at present and has a million sqft more signed up already ...More
By Sanjana Surbhi