GE & Honeywell: A Failed Merger|Business Strategy|Case Study|Case Studies

GE & Honeywell: A Failed Merger

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

To download GE & Honeywell: A Failed Merger case study (Case Code: BSTR085) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


Buy With PayPal

Amount to be paid:

Prefer to pay in another currency ?
Select Currency for Payment

Exchange Rates: Click Here
Delivery Details: Click Here

Business Strategy Case Studies
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

Case Details:


Case Code : BSTR085 Electronic Format: Rs. 400;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies


Mergers Acquisition and Takeovers
Case Length : 14 Pages
Period : 1976 - 2003
Organization : GE, Honeywell International Inc, European Commission
Pub Date : 2004
Teaching Note : Available
Countries : USA
Industry : Airlines


The bid by General Electric to take over Honeywell International Inc. was set to become the biggest merger in industrial history, when the European Commission barred it from taking place. One of the biggest companies in the world, GE was attracted by Honeywell's aerospace businesses which fit in neatly with GE's own businesses in the area, thus creating remarkable synergies for both companies. The merger had been passed by the United States Department of Justice, with the recommendation that GE divest itself of Honeywell's military helicopter unit, to protect the US military. However, approval from the EC was not so easy to obtain.

After conducting a thorough investigation, the EC and its Competition Commissioner Mario Monti, determined that a merger between GE and Honeywell would create too powerful an entity and consequently, have adverse effects on the competitive position in the aerospace industry. The merger would give the two companies a very huge combined market share in the common markets in which they operated, along with providing them with the opportunity to bundle their complementary products in future. This would harm competitors as well as customers by creating a near monopoly situation.

The EC demanded that substantial chunks (amounting to almost $ 7 billion) be divested by the two companies, and restrictions be imposed on the operation of the highly profitable GE Capital Services arm. The demands were far more than GE was ready to concede, and the deal fell through. The GE-Honeywell merger case marked the first time that transatlantic regulatory authorities differed in their decision on a merger approval.


To understand the impact of international relations and global business environment on corporate business decisions

To examine transnational differences in approaches to businesses issues and how they influence business dynamics


  Page No.
EC Dashes Merger Hopes 1
GE Background 2
Honeywell Background 4
The Proposed Merger 5
Repercussions of the Failed Merger 8
Conclusion 8
Exhibits 10


General Electric, Honeywell International Inc., merger, European Commission, GE, aerospace businesses, synergies, United States Department of Justice, military helicopter, US military, Competition Commissioner, Mario Monti, entity, competitive position, combined, market share, complementary products, monopoly situation, $ 7 billion, divested, GE Capital Services, transatlantic, regulatory authorities

GE & Honeywell: A Failed Merger - Next Page>>

Custom Search

Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.