AlliedSignal, Honeywell Complete Merger

Bloomberg News

AlliedSignal Inc. said it completed its $15-billion acquisition of Honeywell Inc. after winning conditional approval from the European Commission to buy the world's biggest maker of automated controls. The combination will add to profit immediately, with earnings expected to increase by 20% in 2000 and by at least 18% yearly for the next three years, the company said. The transaction combines the biggest makers of flight-safety systems and automated controls, which should strengthen their sales of avionics, analysts said. They will keep the Honeywell name and have $24 billion in annual revenue. On the New York Stock Exchange, shares of AlliedSignal, based in Morristown, N.J., rose 75 cents to close at $60.75; Honeywell, based in Minneapolis, rose $2.25 to close at $114.19. The combined company will begin trading today using Honeywell's symbol, HON.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World