Wabtec’s merger with GE Transportation, first announced in May, is near to closing, and has the potential to create a major rail-equipment entity. The deal would combine two of Canada’s largest rail companies, which have been struggling for years as they try to compete against each other on price and service. Wabtec will be able to provide components to GE, which should boost after-market revenues. Almost $3bn is expected to be added to Wabtec’s debt to fund the merger.
Wabtec’s merger with GE Transportation, first announced in May, is near to closing, and has the potential to create a major rail-equipment entity. Concerns regarding Wabtec’s move into the highly cyclical freight sector have largely been assuaged, with analysts pointing to the changing nature of the locomotive delivery cycle, and the fact that the most recent cycle hit its peak in 2015 and its bottom last year. Wabtec will be able to provide components to GE, which should boost after-market revenues. Almost $3bn is expected to be added to Wabtec’s debt to fund the merger.