Summary
Honeywell International Inc. announced on January 19, 2004, that it has terminated discussions with Federal-Mogul Corporation concerning the potential acquisition of Honeywell's Bendix friction materials business. After several months of negotiations, the companies were unable to reach an agreement on the terms of the transaction. This development means Honeywell will continue to operate and focus on growth within its automotive friction materials segment, aiming to serve its global customer base and maintain its leadership position in the market. The company emphasized that the termination of these discussions will not affect its previously issued financial guidance for 2003 and 2004. This suggests that the potential divestiture was not a critical component of the company's near-term financial strategy, and investors can expect current financial performance expectations to remain unchanged.
Key Highlights
- 1Honeywell has terminated acquisition discussions with Federal-Mogul for its Bendix friction materials business.
- 2The termination followed several months of negotiations where parties could not agree on deal terms.
- 3Honeywell will now focus on growth and serving customers within its automotive friction materials segment.
- 4The company reaffirmed its commitment to maintaining its global leadership in friction materials.
- 5The termination of discussions will not impact Honeywell's previously issued 2003 and 2004 financial guidance.
- 6Honeywell is a diversified technology and manufacturing leader with $23 billion in revenue.