case study on ge and honeywell

Case studyon

Failed merger

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Introduction - GE

General Electric was formed by the 1892 merger

Founding Members

Thomas editionElihu Thomson Edwin Houston

Edison General Electric

Company

Thomson-Houston Electric

Company

GE

Products

Home appliance

Aircraft Engine

Gas fired generator

Steam generator

Apart from this they also provide leasing service for aircraftWhich comes under the head of GECAS

Introduction - Honeywell Background

Mark C. Honeywell

• Honeywell founded in 1906 by Mark C. Honeywell.

• Honeywell and AlliedSignal merger in 1999

Honeywell Inc.

AlliedSignal Inc.

Honeywell International Inc.

Products

3D Weather Radar

3D Weather Radar

Turbo charger

Truck brakes

Security surveillance

Air purifier

Sensing and control There are many more product in his arsenal

Merger

Global Rank

Sales Rank

Country

Name

1 10 US Citigroup finance

28 US

General Electric

3

31 US

American Intl Group / insurance

9996 UK

Prudential/insurance

100

133 US

United Technologies / aerospace

101110 US

MetLife / insurance

218230 US

Cisco Systems / computers

219176 US Honeywell / /

aerospace

22046 IT

Fiat / automobiles

Didn’t took a start

Failed after 8 months

As per 2001 data

1st attempt by United Technology Corporation(UTX) On 20th,October 2000, at $50-51 a share.

2nd attempt by the GE on October 22, at $55 a share. ($42 billion Merger)

Merger Attempt

Michael R. Bonsignore, CEOHoneywell international Inc.

Jack Welch, CEOGE

Honeywell's aerospace businesses

Increase the market share or increase its own size by 1/3

Access to industrial assets and technological expertise

GEFinancial flexibility

Increase in profit by 18% over the three years

Six Sigma productivity

Honeywell internation

al Inc.

Benefit of merger

Coveted divest Honeywell’s helicopter engine business.

Department of Justice (DOJ) review

Commissioned under Mario Monti

Theory of bundling

Wanted to protect the competitors and customers.

Divestitures some parts of either the avionics or leasing businesses.

European Union Review

Failed after 8 month

On Wednesday, June 13, merger failed.

Jack Welch do not agree with the demand of EU

EU do not agree with the negotiation of welch

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. 

conclusion