GE spins off transportation business with $11.1B deal

General Electric has merged its transportation business with Wabtec, a train parts manufacturer, in a $11.1 billion deal that will give GE a 50.1 percent stake in the newly formed company, according to Fortune.

Wabtec gave GE a $2.9 billion cash payment up front. GE's transportation business manufactures passenger and freight trains, mining equipment and marine diesel engines. It is GE's second-smallest unit in  sales and posted an 11 percent revenue decline in 2017.

GE's share price is down 14 percent in 2018, but news of the transportation merger earned the company a 2 percent stock bump in pre-market trading before May 21.

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