American engineering conglomerate, General Electric has pulled out of the concession deal it had with the Nigerian government.

Now, the company said on Thursday that it has handed over the leadership of a consortium chosen to run the Nigerian rail concession to South Africa’s Transnet.

Transnet is a large South African rail, port and pipeline company.

“GE will be transitioning leadership of the International Consortium, selected to execute the Nigerian narrow-gauge railway concession, to Transnet,” GE said in a statement

“This development is in line with GE’s decision to exit the Transportation business from its portfolio.”

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A procurement process adviser confirmed on Wednesday that GE had pulled out the $2 billion concession deal with the Nigerian government for two rail lines connecting Lagos to Kano and Port Harcourt to Maiduguri.

Fola Fagbule, senior vice president and head of advisory at Africa Finance Corporation (AFC), lead adviser to the procurement process, told Reuters that Transnet was in discussion to replace GE.

Transnet has yet to confirm.

GE said Transnet has been a trusted partner for several decades and that it has confidence in its ability and that of the other consortium members — Dutch-based APM Terminals and China’s Sinohydro Consortium — to execute on the rail concession project.

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