Shares of General Electric Co. surged 2.0% in premarket trade Monday, after the industrial conglomerate agreed to merge its GE Transportation unit with rail operator Wabtec Corp. in a deal valued at $11.1 billion. Wabtec's stock was indicated up over 1%. Under terms of the deal, GE will receive $2.9 billion in cash at closing, and its shareholders will received a 50.1% ownership interest in the combined company. As part of the deal, GE will sell a portion of GE Transportation to Wabtec, complete the spin-off of a portion of GE Transportation to GE shareholders, then merge GE Transportation with a wholly owned subsidiary of Wabtec. Once closed, GE shareholders will own 40.2% and GE will own 9.9% of the merged company. over the weekend,Reuters had reported that GE was close to a deal to sell GE Transportation in a deal that could be valued at more than $20 billion. GE's stock had dropped 14.2% year to date through Friday, while Wabtec shares had climbed 16.9% and the Dow Jones Industrial Average had slipped less than 0.1%.