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General Electric to Acquire Honeywell International in a £31 Billion Deal

Strategic Insights

— 1 min read

General Electric, one of the world's largest industrial conglomerates, has agreed to buy Honeywell International in a £31 billion bid to bolster its aerospace, industrial systems, power, and plastics businesses. The deal marks the largest industrial takeover in history, with Honeywell employing over 100,000 people worldwide. The acquisition is expected to be completed by the beginning of the New Year, subject to approval from US and EU monopoly watchdogs.

Key Takeaways:

  • The deal between General Electric and Honeywell International is valued at £31 billion, making it the largest industrial takeover in history.
  • Honeywell International has over 100,000 employees worldwide and supplies parts for the aerospace industry, makes industrial automation and control systems, and is a supplier of the automotive sector.
  • General Electric, the world's most profitable company, will gain a presence in markets such as plastics and chemicals, and an ability to expand its aerospace wing.
  • The takeover will result in the loss of 550 jobs at Honeywell's headquarters in New Jersey.
  • John Welch, chairman and chief executive of General Electric, will stay on until the end of 2001 to oversee the merger.
  • Lawrence Bossidy, a former top executive at General Electric, had previously worked at Allied Signal and Honeywell, highlighting the complementary cultures of the two companies.
  • The deal marks a significant expansion of General Electric's aerospace business and will provide increased access to markets such as plastics and chemicals.

Statistics:

  • £31 billion: the value of the deal between General Electric and Honeywell International.
  • 100,000: the number of employees employed by Honeywell International worldwide.
  • 200,000: the number of employees employed by General Electric worldwide.
  • £90bn: the annual turnover of General Electric.
  • £7.5bn: the annual profits of General Electric in 2001.
  • 2001: the year by which General Electric's chairman and chief executive, John Welch, plans to retire.
  • 550: the number of jobs to be lost at Honeywell's headquarters in New Jersey.

Sources:

  • General Electric (Company press release)
  • Honeywell International (Company press release)
  • CNBC (News article)
  • Banc of America Securities (Research report)
  • United States Securities and Exchange Commission (Filing)

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