May 21 (Reuters) - General Electric Co confirmed on Monday it will merge its transportation business that makes train engines with Wabtec Corp, a U.S. manufacturer of equipment for the rail industry, in a deal valued at about $11.1 billion.

GE and its shareholders will own 50.1 percent of the combined company, while Wabtec shareholders will own the rest, the companies said in a statement.

Reuters reported on Sunday that a deal valuing the combined business at more than $20 billion could be announced this week. (Reporting by Rachit Vats in Bengaluru; editing by Patrick Graham)