Summary
This 8-K filing from Honeywell International Inc. (HON) officially announces the termination of its previously announced merger agreement with General Electric (GE). The termination was a direct consequence of the European Commission's prohibition of the merger in July 2001, preventing it from receiving necessary regulatory approvals. While the merger is off, GE has agreed to reimburse Honeywell for merger-related expenses and extend certain financing arrangements. Furthermore, GE has entered into an agreement in principle to acquire two specific businesses from Honeywell – Tensor (an oil and gas sensor business) and Honeywell Advanced Composites – along with certain micro turbine and fuel cell technology. Although the terms were not disclosed, these divestitures represent a portion of Honeywell's business being acquired by GE. Both companies have also released each other from all merger-related claims, bringing a definitive close to this proposed transaction.
Key Highlights
- 1Honeywell International Inc. and General Electric (GE) have terminated their merger agreement.
- 2The termination is due to the European Commission's prohibition of the merger.
- 3GE will reimburse Honeywell for merger-related expenses.
- 4GE will extend two financing arrangements with Honeywell on mutually acceptable terms.
- 5GE has agreed in principle to acquire two Honeywell businesses: Tensor (oil and gas sensors) and Honeywell Advanced Composites.
- 6GE will also acquire certain micro turbine and fuel cell technology from Honeywell.
- 7Both companies have released each other from all merger-related claims.