The US Department of Justice (DOJ) has closed its review of the $11bn merger deal between Wabtec and GE Transportation, a business unit of General Electric Company.
The completion of the review is expected to facilitate the closure of the deal in this quarter, subject to other closing conditions.
Wabtec president and CEO Raymond T Betler said: “The DOJ’s decision to close its review of the pending merger marks a significant milestone for our customers, employees and shareholders.
“By bringing together GE Transportation, a global digital industrial leader and supplier to the rail, mining, marine, stationary power and drilling industries, with Wabtec’s broad range of freight, transit and electronics solutions, we will have the capability and expertise to invent smarter ways to move and improve the world.”
In May, the merger agreement was signed following approval of the respective boards of directors. As a part of the deal, GE will receive $2.9bn in cash.
GE shareholders and GE will own 40.2% and 9.9% stake in the merged company. Wabtec shareholders will hold the remaining 49.9% stake.
The Wabtec-GE Transportation merger is estimated to create a stronger and diversified transportation and logistics company with an extended global reach.
It is also expected to make Wabtec a Fortune 500 company with operations across 50 countries.
Through its subsidiaries, Wabtec manufactures equipment, systems and other products for locomotives, freight cars and passenger rail cars. It has around 18,000 employees worldwide.
GE Transportation delivers equipment, technology and services to multiple industry verticals including rail, mining, marine and stationary power industries. It has nearly 9,000 employees worldwide.