General Electric is nearing a deal to merge its transportation business, which manufactures
train engines, with Wabtec Corp, a U.S. maker of equipment for the rail industry, two people familiar with the matter said on Sunday.
A deal that could value the combined company at more than $20 billion could be announced as early as this week, the sources said, asking not to be identified because the
negotiations are confidential.
There is always a possibility that the deal talks, which center on using a tax-efficient structure called a Reverse Morris Trust, could collapse at the last minute, the sources cautioned.
GE and Wabtec did not immediately respond to requests for comment.
Correction: The combined GE and Wabtec may be valued at $20 billion or more.
