Jump to content
Sign in to follow this  
jis

GE Transportation - Wabtec merger

Recommended Posts

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

Share this post


Link to post
Share on other sites

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...

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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."

Edited by keelhauled

Share this post


Link to post
Share on other sites

 

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."

 

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

Edited by jis

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×