General Electric's Transportation Unit to Merge With Wabtec

General Electric Company GErecently entered into a definitive agreement with Wabtec Corporation WAB— a leading manufacturer of rail equipment — for $11.1 billion. Per the agreement, the company will merge its operating segment, GE Transportation, with Wabtec. On completion of the synergistic deal, General Electric will obtain $2.

9 billion in cash, whereas the company and its shareholders will own a 50.1% ownership interest in the combined company. The remaining 49.9% of stake of the combined company will be retained by Wabtec shareholders. Notably, the deal is likely to close in early 2019.