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Commission blocks GE-Honeywell merger

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Published 03 July 2001, updated 29 January 2010

European Commission decides to prohibit proposed acquisition by General Electric of Honeywell International

The Commission's anti-trust authorities judged that "the merger would create or strengthen dominant positions on several markets and that the remedies proposed by GE were insufficient to resolve the competition concerns resulting from the proposed acquisition of Honeywell".

 

Positions: 
In a reaction, General Electric expressed its disappointment over the Commission's decision and said: "We strongly disagree with the Commission's conclusions about the competitive effects of GE's acquisition of Honeywell and its statements about the market position and influence of GE Aircraft Engines and GE Capital Aviation Services. The facts just don't support these assertions. We believe this acquisition would have clearly benefited consumers in terms of quality, service and prices"

 

Background: 
The European Commission decided on Tuesday 3 July to prohibit the proposed acquisition by General Electric of Honeywell International. It is the first time in history that a merger between 2 US companies gets blocked by the European authorities. The Commission's decision will probably lead to new tensions between the EU and the US.

 

The acquisition by General Electric of Honeywell International was agreed in October 2000. It would have been the largest industrial merger in history. This merger was approved in May by US anti-trust investigators. The US government and business has put serious pressure on the EU not to block the merger, but Commissioner Monti refused to give in to "political pressure". (see alsoEurActiv 25 June)

 

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