Case study on GE and Honeywell
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Case study on Failed merger +
description
this presenttation shows why the merger didn't took place between the two giants of USA.
Transcript of Case study on GE and Honeywell
Case studyon
Failed merger
+
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
