The European Commission has cleared the merger of US-based Wabtec and French rail products company Faiveley Transport in a €1.7bn deal.
The latest approval is conditional, based on a commitment to sell Faiveley Transport’s sintered brake material operation, Faiveley Transport Gennevilliers (FTG).
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Both Wabtec and Faiveley will continue to cooperate with the US Department of Justice to reach approval.
The acquisition of Faiveley by Wabtec is expected to occur in the fourth quarter of this year.
The proposed combination is expected to create a single railway equipment company with combined revenues of €4bn.
Upon completion of the transaction, Faiveley will pursue its long-term strategic involvement in the railway industry as a shareholder of Wabtec.
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By GlobalDataFaiveley Transport CEO Stéphane Rambaud-Measson said that the combination of operations will be a strategic move for the company.
Rambaud-Measson said: “This transaction would enable us to pursue our ambition to become a global leader in railway equipment and services in passenger transit.”
Completion of the deal is subject to approval of the buyer of FTG by the European Commission, as well as regulatory clearance in the US.
Wabtec provides technology-based products and services for freight rail, passenger transit and other industrial segments, while Faiveley supplies integrated systems for the railway industry.
