General Electric Co. (GE) is looking to exit from the rail business, as new Chief Executive John Flannery seeks to streamline the conglomerate, according to the Wall Street Journal, which cited sources familiar with the matter. The Boston-based company is exploring options for the GE Transportation division, as a major part of plans to divest more than USD 20 billion worth of assets in the next two years.
The company reportedly is looking to partner, spin off or possibly sell the operations, which primarily produce diesel-powered locomotives and railroad equipment. An outright sale could trigger a big tax hit since GE has owned the business for a century and it is valued so low on its books.
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