AlliedSignal, Honeywell to Shed Businesses

AlliedSignal Inc. and Honeywell Inc. agreed to shed avionics businesses that account for about 1% of their combined sales to gain regulatory approval of their proposed merger. The Justice Department won’t challenge the merger if Minneapolis-based Honeywell, the world’s largest maker of automated controls, sells its traffic alert and collision avoidance system businesses, the companies said. Morristown, N.J.-based AlliedSignal must divest its search and surveillance weather-radar business, its space and navigation business, its communications-electronics business and its guidance technology business, spokesman Tom Crane said. The European Union also must approve the proposed merger. Shares in AlliedSignal closed up 75 cents at $60.69, while Honeywell rose $1.38 to close at $113.38, both on the NYSE.