GE Transportation - Wabtec merger

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jis

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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...
 
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.
 
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.
 
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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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.
 
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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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