Wabtec, Progress Rail Settle Anti-Trust Lawsuit

Got story updates? Submit your updates here. ›

Wabtec and Progress Rail, a unit of Caterpillar, have settled a lawsuit alleging that Wabtec engaged in anti-competitive measures following its $11 billion acquisition of GE Transportation in 2019. Progress Rail claimed the acquisition created a dominant market position in diesel-electric long-haul freight locomotives and components, and that Wabtec abused its power through exclusionary tactics such as restricting data flow, imposing costs on rivals, and making false statements about Progress Rail exiting the market.

Why it matters

This settlement resolves a high-profile anti-trust case in the rail industry, where consolidation and market dominance can have significant impacts on competition, innovation, and consumer prices. The outcome could set precedents for how regulators and courts view future mergers and acquisitions in the sector.

The details

Progress Rail, which manufactures the former General Motors line of motive power, alleged in the lawsuit that Wabtec’s actions after the GE Transportation acquisition harmed competition and consumers. The two companies have now settled the case, with no admission of liability. They acknowledged that they remain suppliers of long-haul freight locomotives and cab components to Class I railroads and other customers.

• Wabtec acquired GE Transportation in 2019 for $11 billion.
• Progress Rail filed the anti-trust lawsuit against Wabtec following the acquisition.