US-based Wabtec has completed the previously announced acquisition of majority ownership of French rail products company Faiveley Transport for €1.7bn.

The news follows the European Commission (EC) approval last month for the merger.

The combination of Wabtec and Faiveley is expected to create a rail equipment company with revenues of approximately $4.2bn and a worldwide presence in all key transit and freight rail regions.

Wabtec hopes to realise at least $50m in annual pre-tax synergies from the combination by year three.

Wabtec executive chairman Albert Neupaver said: “The acquisition of Faiveley Transport is an excellent strategic fit, expanding our geographic presence, broadening our product and service capabilities, and strengthening our technology and innovation initiatives.

“The combination of two rail industry leaders creates compelling growth opportunities and synergies, and strengthens the diversity of our revenue base.”

"The combination of two rail industry leaders creates compelling growth opportunities and synergies, and strengthens the diversity of our revenue base."

Wabtec acquired the stake for approximately $212m in cash and 6.3 million shares of Wabtec common stock.

Wabtec president and CEO Raymond Betler said: “Our combination with Faiveley Transport brings Wabtec many complementary products, a strong presence in the European and Asia Pacific transit industries, and solid relationships with blue-chip, global customers.

“Together, we will be a more efficient global competitor, with a focus on technology, quality and customer service, and a singular mission: to help customers improve their safety, productivity, and efficiency.”

Faiveley Transport chairman of the management board and CEO Stéphane Rambaud-Measson said: “The passenger transit business typically provides a steady flow of new projects and aftermarket growth opportunities, and we are well positioned in key global markets such as Europe and Asia Pacific.”

Faiveley provides integrated systems and services for the railway industry, while Wabtec provides products and services for freight rail, passenger transit and other industrial segments.