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GE-Honeywell gets OK
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May 2, 2001: 7:26 p.m. ET
Justice Dept. approves deal on condition that helicopter subsidiary is divested
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NEW YORK (CNNfn) - The U.S. Department of Justice agreed in principle Wednesday to approve the $42 billion merger between General Electric Co. and Honeywell International Inc., providing Honeywell divests its helicopter engine business.
"Without this divestiture, the U.S. military would likely have faced higher prices, lower quality and reduced innovation in the design, development and production of the next generation of advanced U.S. military helicopter engines," said Constance K. Robinson, director of operations and merger enforcement for the Justice Dept. antitrust division, in a statement.
"Moreover, a range of commercial business aircraft users would likely have suffered increased prices and reduced quality in the repair and overhaul of Honeywell aircraft engines and auxiliary power units," Robinson added.
""We are very pleased with the agreement in principle we've reached with the DOJ," said Honeywell Chairman and CEO Michael Bonsignore, via a spokesman. "We can now focus on gaining clearance from the European Commission and then moving forward to execute our comprehensive integration plan."
In Wednesday trading, shares of GE (GE: Research, Estimates) rose 19 cents to $49.10, while Honeywell (HON: Research, Estimates) rose 10 cents to $49.05. 
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