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Wabtec to win EU approval for $1.8 billion Faiveley deal: sources
September 26, 2016 / 3:00 PM / a year ago

Wabtec to win EU approval for $1.8 billion Faiveley deal: sources

BRUSSELS (Reuters) - U.S. rail equipment maker Wabtec Corp (WAB.N) is set to win EU antitrust approval this week for its $1.8 billion bid for French rival Faiveley Transport FAIP.PA, two people familiar with the matter said on Monday.

The deal would create one of the world’s largest equipment suppliers to public railway companies.

The European Commission had expressed concerns the merger would reduce competition and might lead to price hikes for customers. To allay those concerns, Wabtec pledged in July to sell Faiveley’s brake pad unit if it wins control of the French company.

The European Commission has said it would make a decision on the deal by Oct. 24, but the sources said it would come this week.

Commission spokesman Ricardo Cardoso declined to comment. Wabtec did not immediately reply to a request for comment.

Faiveley’s share price spiked after Reuters reported on Monday that the deal would go ahead, trading up 1.5 percent at 97.90 euros. Wabtec shares were 1.7 percent higher at $78.12.

Wabtec bid in October last year to buy Faiveley, including its debt, in a cash-and-stock deal with an offer price of 100 euros per Faiveley share.

Pennsylvania-based Wabtec and Faiveley compete with Germany’s Knorr-Bremse in rail equipment.

Wabtec, which was created from the merger of Westinghouse Air Brake Company (WABCO) and MotivePower Industries Corp in 1999, has operations in the United States, Europe, Asia, Australia, South America and Africa.

Reporting by Foo Yun Chee, editing by Julia Fioretti and Susan Fenton

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