The General Electric Company and Honeywell have confirmed the US Department of Justice (DOJ) has given conditional clearance for GE to acquire Honeywell in a tax-free merger valued at $43 billion.
Following an extensive five month investigation, DOJ and the companies have reached an agreement under which the acquisition will be cleared subject to final negotiation and entry of a consent decree.
‘We are pleased with the DOJ’s action’, said Jack Welch, chairman and CEO of GE (pictured),. ‘Now that the US has completed its review of the transaction, we can focus on our continuing discussions with European Commission officials. We remain positive about that process and hopeful we can proceed promptly to a just conclusion.’
Honeywell chairman and CEO, Michael R Bonsignore commented: ‘We are very pleased with the agreement in principle we have reached with the Department of Justice. We can now move forward to execute our comprehensive integration plans. All of us at Honeywell are excited about the long term shareowner value that will be created by the combination of our two companies.’