“I think it’s odd if GE and Honeywell were surprised by the road the EC took. Swaine, a professor of legal studies who conducts research on international antitrust law. “My sense is one of the reasons why this has gone so badly wrong is that the parties didn’t do their homework,” says Wharton’s Edward T. It is also clear that Honeywell, at least in the short term, will suffer more from the failed deal than GE. There are, though, plenty of lessons to be learned by everyone involved in the case, including regulators who do not see eye to eye on antitrust theory, and by other multinational corporations thinking of tying the knot in the future. But faculty members at Wharton and the Goizueta Business School of Emory University say there is no one person, government agency or company to whom an accusing finger can be pointed. It is natural to look for someone to blame when a high-profile transaction goes awry, especially a $42-billion deal involving major players in an important sector like aerospace. At the last minute, GE made concessions to the EU and the 20-member European Commission, the EU’s executive arm - and Honeywell made concessions of its own to GE - but the overtures were not enough to salvage the relationship. When the bride and groom sought approval from the European Union, however, the EU’s competition commissioner, Mario Monti, vetoed the betrothal. Justice Department gave its blessing to what would have been the largest industrial acquisition ever. But after a protracted and rocky engagement, these star-crossed corporations will not be walking down the aisle.īoth companies were blissful when the antitrust division of the U.S. It looked as if it would be a marriage made in heaven when General Electric announced plans last year to acquire Honeywell International. A Key to Better Leadership: Confident Humility December 6, 2022.How to Use Neuroscience to Build Team Chemistry January 23, 2023.Crisis Leadership: Harness the Experience of Others February 14, 2023.Choosing a New Board Leader: Eight Questions March 7, 2023. ![]()
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