GE & Honeywell: A Failed Merger

GE probably felt that buying Honeywell was too great a risk at a time of economic downturn. This was probably why GE did not fight the opposition too hard in spite of Honeywell's urge to resubmit the proposal after revising the price downwards. The EC was also severely criticized by analysts, mainly in the US. Some of them felt expecting a merger between two American companies to seek approval from authorities around the globe was going too far. Boeing, an aircraft manufacturer based in the US, felt that the EC was trying to protect European aircraft manufacturing companies, notably Airbus, or European engine-makers from the combined market clout of GE-Honeywell...

The issue also brought to light transatlantic differences in anti-trust laws. This raised important questions about the viability of companies seeking approval from various agencies around the world before taking major decisions.

For instance, according to analysts, the focus in anti-trust cases in the US was on customers' interests. Mergers or corporate decisions which affected customers adversely were usually viewed unfavorably.

In Europe, however, they said the focus seemed to be on preserving competitors and protecting their interests, as was proved by the GE-Honeywell case...