By Harry Brumpton and Greg Roumeliotis
(Reuters) - General Electric Co <GE.N> is nearing a deal to merge its transportation business, which manufactures train engines, with Wabtec Corp <WAB.N>, a U.S. maker of equipment for the rail industry, two people familiar with the matter said on Sunday.
A deal that could value the combined company at more than $20 billion (14.85 billion pounds) could be announced as early as this week, the sources said, asking not to be identified because the negotiations are confidential.
There is always a possibility that the deal talks, which centre on using a tax-efficient structure called a Reverse Morris Trust, could collapse at the last minute, the sources cautioned.
GE and Wabtec did not immediately respond to requests for comment.
(Reporting by Harry Brumpton and Greg Roumeliotis in New York; Editing by Lisa Shumaker)
