GE: set to merge GE Transportation with Wabtec
(CercleFinance.com) - GE has announced an agreement to merge its GE Transportation division with Wabtec, in a deal worth 11.
1 billion dollars, which is expected to be finalised at the beginning of 2019, subject to the usual regulatory conditions and authorisations.
Under the terms of the agreement, the US conglomerate will receive 2.9 billion in cash when the deal is finalised, and with its shareholders, will have 50.1% capital of the combined entity, while Wabtec's shareholders will own the remaining 49.9%.
The transaction will result in a group that generates approximately 8 billion dollars in revenues, with a more diversified business mix, higher margins and will be earnings accretive (+15% on cash EPS) in the first year.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
1 billion dollars, which is expected to be finalised at the beginning of 2019, subject to the usual regulatory conditions and authorisations.
Under the terms of the agreement, the US conglomerate will receive 2.9 billion in cash when the deal is finalised, and with its shareholders, will have 50.1% capital of the combined entity, while Wabtec's shareholders will own the remaining 49.9%.
The transaction will result in a group that generates approximately 8 billion dollars in revenues, with a more diversified business mix, higher margins and will be earnings accretive (+15% on cash EPS) in the first year.
Copyright (c) 2018 CercleFinance.com. All rights reserved.