Justice Department OKs GE-Honeywell Merger

The federal government tentatively approved General Electric Co.’s merger with Honeywell International Inc. The Justice Department agreement sanctioning the deal requires Honeywell to divest its helicopter engine business and authorizes new third-party maintenance and repair service for some of its aircraft engines. The department said the U.S. military would have faced higher prices, lower quality and reduced innovation without the divestiture. Final approval of the $42-billion merger hinges on the negotiation of a consent decree with the companies, the department said. European regulators are still looking at the merger. GE Chairman and Chief Executive Jack Welch said the company remains “positive about that process.” Shares of GE rose 19 cents to close at $49.10; Honeywell rose 10 cents to close at $49.05. Both trade on the New York Stock Exchange.