The Deal Breaker

The Europeans are playing hardball with GE, frustrating CEO Jack Welch's $40 billion-plus Honeywell merger. European Commission regulators fear that the union would give the new entity undue market power. GE, they argue, could bundle its jet engines and Honeywell's avionics, hurting Rolls Royce and other engine suppliers.

GE told U.S. regulators last month that it was willing to sell Honeywell units--including those making regional jet engines, air-turbine starters and other aerospace products--worth about $2.2 billion in annual revenue. The E.U., though, is demanding divestitures amounting to more than $3 billion. GE says the Commission is exacting too much, undermining the...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!