Court Confirms Legality of Wabtec and GE Transportation Merger

The U.S. District Court for the District of Delaware ruled that the merger between Wabtec and GE Transportation complied with the law and dismissed Progress Rail’s lawsuit, finding no signs of unfair competition. This is reported by the railway transport news portal Railway Supply.

Progress Rail filed the suit in 2023, accusing Wabtec of abusing its market power in the mainline locomotive and services segment. The company claimed that its competitor controlled 71% of locomotive deliveries in North America over the past 10 years.

The lawsuit also stated that Wabtec allegedly holds up to 90% of the U.S. market for Tier IV locomotives. The plaintiff argued that the merger harms competition and disrupts market balance.

Court Found No Grounds to Challenge the Merger

The court rejected the allegations, emphasizing that a large market share does not automatically constitute an antitrust violation. It also noted that the deal had received federal approval back in 2019.

Wabtec acquired GE Transportation for $11 billion, gaining locomotive plants in Erie and Fort Worth, along with an engine manufacturing facility in Grove City. These assets became part of Wabtec’s strategy to expand production capacity.

Ruling Strengthens Wabtec’s Legal and Market Position

The final decision fully cleared Wabtec of all antitrust accusations. The court confirmed that the merger did not violate the law and did not harm competition in the industry.

This outcome strengthened the company’s position in the market and removed the threat of forced asset divestiture, which Progress Rail had demanded.

This story originally appeared on Railway Supply.