Wabtec has entered into an agreement to combine the GE Transportation division. The transaction is valued at US$11.1bn when adjusted for a net tax benefit of US$1.1bn. The combined company is valued at 11.75x adjusted EBITDA 2019. GE will receive US$2.9bn in cash and will have a stake of 50.1% in the new company. With respect to valuation, we are surprised that GE Transportation will not only receive US$2.9bn in cash but also hold a majority interest in the company. We see the higher profitab
22 May 2018
Consolidation process in the railway industry continues
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Consolidation process in the railway industry continues
Siemens Aktiengesellschaft (SIE:WBO) | 0 0 0.4% | Mkt Cap: 93,908m
- Published:
22 May 2018 -
Author:
Heinz Steffen -
Pages:
2
Wabtec has entered into an agreement to combine the GE Transportation division. The transaction is valued at US$11.1bn when adjusted for a net tax benefit of US$1.1bn. The combined company is valued at 11.75x adjusted EBITDA 2019. GE will receive US$2.9bn in cash and will have a stake of 50.1% in the new company. With respect to valuation, we are surprised that GE Transportation will not only receive US$2.9bn in cash but also hold a majority interest in the company. We see the higher profitab