July 3, 2001 — The European Commission announced today that it will prohibit a proposed acquisition of Honeywell International Inc. by General Electric Co. of Fairfield, Conn.
The key reason for preventing the merger, the commission said, was that the it “would create or strengthen dominant positions in several markets and that the remedies proposed by General Electric were insufficient to resolve competition concerns.”
The merger would “have severely reduced competition in the aerospace industry and resulted ultimately in higher prices for customers, particularly airlines,” said European Union competition commissioner Mario Monti. He added that he regretted the companies involved had not done more to address the competition concerns of the commission.
The deal would have been valued more than US$40 billion. It had been conditionally approved by the U.S. Justice Department several months ago.