GE, Honeywell Merger Officially Called Off
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General Electric Co. and Honeywell International Inc. formally terminated their merger agreement three months after the European Union blocked the $47-billion transaction.
General Electric will reimburse Honeywell for some merger-related expenses and agreed to buy two businesses with sales of $35 million a year. Terms weren’t disclosed.
Honeywell would have had to pay a $1.35-billion breakup fee to void the agreement before Nov. 30. European regulators killed the proposal in July over antitrust concerns. Appeals of the European Commission decision are still in effect, spokesmen for the companies said.
The decision comes almost a year after former General Electric Chief Executive Jack Welch outbid United Technologies Corp. for Honeywell. The rejection ended what would have been the company’s biggest acquisition ever and cost Honeywell Chief Executive Michael Bonsignore his job.
Shares of Fairfield, Conn.-based GE rose 41 cents to $38.05, while Morris Township, N.J.-based Honeywell fell 45 cents to $25.65, both on the New York Stock Exchange.
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