GE and Honeywell terminate merger agreement

After the European Commission prohibited their merger on July 3, GE and Honeywell have now formally terminated their merger agreement.

GE and Honeywell have terminated their merger agreement.

The merger required regulatory approval, but the European Commission prohibited the merger on July 3, 2001.

In connection with the termination, GE agreed to reimburse Honeywell for merger-related expenses and agreed to extend two financing arrangements on mutually acceptable terms.

In addition, GE agreed in principle to acquire two businesses from Honeywell with estimated, aggregate 2001 sales of $35 million (Tensor, an oil and gas sensor business, and Honeywell Advanced Composites) and certain technology related to micro turbines and fuel cells.

Terms were not disclosed.

GE and Honeywell also released each other from all merger-related claims.