GE (GE), an early pioneer of the locomotive industry, agreed on Monday to merge the struggling rail business with rival Wabtech (WAB) in an $11 billion deal. GE had owned the rail business, now known as GE Transportation, since 1907 and eventually turned it into one of the largest makers of freight locomotives in North America. GE will be required to unload its stake within three years, making an exit from the rail business. GE's rail business was booming in 2014 thanks in part to high prices for metals and oil. Even after the rail deal, GE will continue to make everything from MRI machines and power plants to jet engines.

Source: CNN May 21, 2018 13:54 UTC