GE and Honeywell End Merger AgreementOctober 02, 2001 by Jeff Shepard
General Electric Co. (Fairfield, CT) and Honeywell International Inc. (Morristown, NJ) announced they have terminated their merger agreement, three months after European regulators rejected the $41.0 billion deal.
GE agreed to reimburse Honeywell for merger-related expenses and to extend two financing arrangements. GE also agreed to acquire two businesses from Honeywell with estimated sales of $35.0 million for undisclosed terms. The businesses are Tensor (Round Rock, TX), an oil and gas sensor business, and Honeywell Advanced Composites (Newark, DE), related to micro turbines and fuel cells. GE and Honeywell also released each other from all merger-related claims.
"This is about moving on -- both parties were ready to do that," said Gary Sheffer, a GE spokesman.
Termination of the merger allows other companies to bid for Honeywell. Honeywell CEO Lawrence Bossidy, who took over after the merger was rejected, has said he has no intention of selling the company.