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 also
EurActiv 25 June)