GE, Honeywell Formally Cancel Merger Pact

October 3, 2007, 5:21 AM

General Electric and Honeywell International formally terminated their merger agreement, four months after European regulators rejected the proposed $45 billion deal. The new agreement, which releases both companies from all merger-related legal actions, ends the threat of Honeywell suing GE for allegedly violating the merger agreement by not pushing regulators hard enough. Termination of the merger allows other companies to bid for Honeywell. Meanwhile, both GE and Honeywell are continuing to appeal to the European Commission, which blocked the deal. The appeals are aimed at challenging some of the findings by European regulators rather than at reversing the decision. That ruling, if allowed to stand, could make it difficult for GE to make future acquisitions.

Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.