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. In 2017, equipment accounted for 45% of GE Transportation’s sales. 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. 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.