General Electric’s long-standing appeal against the European Commission’s blocking of its proposed merger with Honeywell has been given a judgement date, setting the stage for a decision that could spark further aerospace consolidation. GE expects the European Court of First Instance to rule on 14 December on whether the EC correctly interpreted its own competition rules in rejecting GE’s planned acquisition of Honeywell in 2001, despite having secured US anti-trust approval.
Insiders familiar with the court say the judges are likely to overturn the original ruling on the grounds that there would still be sufficient powerplant manufacturers competing in the global aerospace market. If successful, the appeal could clear the way to future large mergers, as the GE-Honeywell precedent would be voided.
Source: Flight International
