# GE Transportation - Wabtec merger



## jis (May 21, 2018)

GE is divesting its Transportation unit, which is responsible for all of GE's rail related products and merging it with Wabtec to form an $8 billion per year revenue company, which will be a Forture 500 company GE will retain 51% ownership of the new Wabtec.

http://www.getransportation.com/wabtec-and-ge-transportation-merge-creating-global-leader-rail-equipment-services-and-software


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## railiner (May 21, 2018)

Interesting...I dont suppose their jet aircraft engine division is a part of their transportation division?

They mention marine products, so Im guessing that their marine gas turbines are included?

Not sure from that press release...


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## jis (May 21, 2018)

railiner said:


> Interesting...I dont suppose their jet aircraft engine division is a part of their transportation division?
> 
> They mention marine products, so Im guessing that their marine gas turbines are included?
> 
> Not sure from that press release...


No aircraft stuff has not been a part of Transportation at GE. The current GE Transportation BU is going to be divested pretty much in toto and merged into Wabtec. GE will own 51% of the merged company.


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## Just-Thinking-51 (May 22, 2018)

So if you own 51% of the new company. Then you really have not sold off your railroad division. You just actually just made it larger. Seem that 51% ownership was not part of the headline of this divesting that cause the stock of GE to go up.


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## jis (May 22, 2018)

It was part of the financial disclosure. Hopefully people who buy and sell stocks do read financial statements. A man on the street who lives by headlines may not.


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## keelhauled (May 22, 2018)

My layman's understanding was that GE and GE shareholders would together own 51% of the new company, with Wabtec shareholders the balance, but no group would have a majority stake.

Edit: for Wall Street Journal subscribers the article is here. Relevant quotes:



> "GE shareholders will own 40.2% of the combined company, with GE owning about 9.9% after the deal, the companies said Monday. GE is required to sell its stake in the combined company within three years.
> 
> Wabtec shareholders will retain 49.9% of the combined company."


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## jis (May 22, 2018)

keelhauled said:


> My layman's understanding was that GE and GE shareholders would together own 51% of the new company, with Wabtec shareholders the balance, but no group would have a majority stake.
> 
> Edit: for Wall Street Journal subscribers the article is here. Relevant quotes:
> 
> ...


Your understanding is correct. I apologize for mis-stating.


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## Rover (Nov 27, 2021)

From a WFAA News report Nov. 26, 2021

Fort Worth factory successfully reinvented itself after railroads stopped buying new locomotives

Wabtec is also working behind the scenes on a potential game changer for the rail industry – a battery-electric locomotive, or BEL, that Wabtec calls the FLX Drive.


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