Greenbrier Companies and Astra Rail Management have received all necessary regulatory approvals from respective European antitrust officials for their proposed merger.
The transaction will be completed on 1 June following the approval, and will see the creation of a new company called Greenbrier-Astra Rail.
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The new entity will combine all operations of the two companies and is set to focus on freight railcar manufacturing, engineering and repair throughout Europe.
Greenbrier's European operations headquartered in Swidnica, Poland, have now been combined with Astra Rail, based in Germany and Arad, Romania, under the agreement.
Greenbrier has also agreed to pay Astra Rail €30m at closing, and a further €30m 12 months after closing, as part of the merger plan announced in October.
The company will own approximately 75% interest in the new company, while the remaining 25% stake will be owned by Astra Rail chairman Thomas Manns.
Manns said earlier: “By combining the European operations of Greenbrier and Astra Rail, we will create a company that will be stronger and more able to pursue future growth opportunities in the European region and beyond.
“This combination will expand our base of executive talent and will grow our engineering and technical resources for the support and development of freight railcar manufacturing and services throughout the world.”
Both the companies currently provide their various services from three locations each, and Greenbrier-Astra Rail is set to offer freight railcar sales, manufacturing and repair operations across Europe following the merger's completion.
The company will be headquartered in the Netherlands, with most of its operations located in Poland and Romania. It is expected to employ a total of nearly 4,000 personnel across all of its facilities.
