General Electric (GE) chief executive John Flannery is taking the biggest step yet in his plan to revitalise the beleaguered manufacturer, agreeing to merge its century-old train engine business with Wabtec in a deal valued at $11.1bn (€9.4bn).

General Electric’s new boss is dramatically reshaping the company and slashing the dividend as he looks to pull the manufacturing company out of one of the deepest slumps in its 125-year history. The moves failed to win over investors.