General Electric is reportedly closing in on a deal to merge its transportation business, which includes locomotives and railroad services, with Wabtec Corp., an equipment manufacturer in the rail industry. The resulting company could be worth more than $20 billion.

So says Reuters, which cited two sources acquainted with the matter who declined to be named due to the confidential nature of the talks. While Reuters reported that an settlement would possibly be introduced as early as this week it additionally cautioned that the deal might nonetheless be scuttled on the final minute. 

The two sides are apparently speaking about structuring the deal round what is known as a Reverse Morris Trust, which might lead to a tax environment friendly switch of property.

Neither GE nor Wabtec have responded to a USA TODAY request for remark.

There’s been hypothesis that GE has been wanting to jettison its transportation enterprise as a part of CEO John Flannery’s ongoing efforts to streamline the Boston-based conglomerate.

GE Transportation reported revenues of $four.2 billion in 2017, down from $four.7 billion the 12 months earlier than. Wabtec, which relies close to Pittsburgh in Wilmerding, PA, had 2017 gross sales of $three.9 billion.

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