- Last year, GE announced that it will merge its transportation business with Wabtec.
- GE will be distributing 8.7 billion shares to the shareholders on February 14.
Renowned American conglomerate General Electric Co has apparently made it to the headlines for having announced that it plans to close a pivotal merger deal concerning its transportation unit. As per credible reports, GE’s merger agreement regarding its transportation business had been signed with Wabtec Corp and is expected to gain closure by the end of February.
For the uninitiated, the company had declared last year that it would be merging its transportation business with Wabtec, the U.S. rail equipment manufacturer. As per sources familiar with the development, the overall deal was valued at USD 11 billion, and entailed that GE and its shareholders would be the recipient of nearly half of the combined business. Industry experts had apparently claimed back then that the collaboration would result in the merger of two prominent companies in rail equipment and services, given that it was set to combine GE Transportation – the global digital industrial leader as well as supplier for the mining, marine, rail, drilling, and stationary power industries, along with Wabtec’s widespread portfolio of transit, freight, and electronics solutions.
As reported by Nasdaq, GE publicly announced that it would now be distributing 8.7 billion shares to the shareholders on the 14th of February. Sources claim that GE’s shareholders may plausibly also get close to 0.005403 of a share of Wabtec’s common stock for every GE share held. This would however, be dependent on the number of shares of Wabtec and GE common stock, outstanding on Dec. 31, the sources affirm.
Post the official closure of the merger agreement, Wabtec will be the owner of around 50.8% of the merged entity, while GE and its shareholders will retain ownership of the remaining 49.2%, as stated by credible reports.