Case | HBS Case Collection | December 2003

Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger

by Mihir A. Desai, Belen Villalonga and Mark Veblen

Abstract

Helps students understand the principles underlying competition and antitrust policy in the context of the proposed GE-Honeywell merger. The U.S. Department of Justice has already approved the transaction and it is being considered by the European Commission. The Competition Commissioner, Mario Monti, must analyze the economic consequences of the proposed merger and evaluate how it will affect competitors, customers, and product markets. He must also address key policy choices. In understanding the nuances of the transaction, students identify different sources of value and must confront the question of whether the efficiencies generated enhance social welfare in the long run. The decision of whether to approve the merger, and on what terms, provides students with insights into the complexities of operating under multiple regulatory regimes.

Keywords: Mergers and Acquisitions; Decisions; Economy; Fairness; Governing Rules, Regulations, and Reforms; Competition; Aerospace Industry;

Citation:

Desai, Mihir A., Belen Villalonga, and Mark Veblen. "Antitrust Regulations in a Global Setting: The EU Investigation of the GE/Honeywell Merger." Harvard Business School Case 204-081, December 2003.