Wabtec Corporation has entered into exclusive negotiations to acquire Faiveley Transport for €1.7 billion.
The combined company, which would continue trading as Faiveley Transport and keep its headquarters in Gennevilliers, would become one of the world’s largest rail equipment suppliers, generating revenues of around €4 billion, Wabtec and Faiveley have said.
Stéphane Rambaud-Measson, chairman of the management board and chief executive officer of Faiveley Transport will become executive vice president of Wabtec corporation, and president and CEO of the new Wabtec Transit group.
Stéphane Rambaud-Measson, chairman of the management board and chief executive officer of Faiveley Transport, said: “Our complementarity is remarkable, both in terms of product portfolios and geographies.
“This transaction would enable us to pursue our ambition to become a global leader in railway equipment and services in passenger transit. Faiveley Transport would double size with the contribution of Wabtec’s transit division, thus enlarging the French industrial footprint of the group.
“The strong commitment of the Faiveley family as long term shareholders is a testimony of the powerful industrial rationale of the proposed combination.”