8-KOther Events

HONEYWELL INTERNATIONAL INC 8-K Report (Oct 10, 2001)

Filed October 10, 2001For Securities:HONHONIV

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.

Frequently Asked Questions

The merger was terminated because it could not obtain the necessary regulatory approval. Specifically, the European Commission prohibited the merger on July 3, 2001.

GE has agreed to reimburse Honeywell for merger-related expenses, which will offset some of the costs incurred. Additionally, GE will extend two financing arrangements, providing continued financial support on acceptable terms.

Yes, GE has agreed in principle to acquire two specific businesses from Honeywell: Tensor, which is an oil and gas sensor business, and Honeywell Advanced Composites. GE will also acquire certain technology related to micro turbines and fuel cells. The financial terms of these specific acquisitions were not disclosed in this filing.

No, GE and Honeywell have released each other from all merger-related claims, meaning they will not pursue legal action against each other concerning the terminated merger agreement.