EC investigates Allied Signal deal

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The Independent Online
THE EUROPEAN COMMISSION yesterday began a full investigation into the proposed merger between the US firms AlliedSignal and Honeywell, citing concerns about its impact on the avionics sector in Europe. The companies shrugged off the move, saying they were confident of final regulatory approval in the 15-nation bloc.

The European Union's competition watchdog now has a further four months to give its final verdict on the all-American deal. AlliedSignal shares opened trading unchanged in New York, while Honeywell lost 50 cents to $118.75. The companies' main competitors are France's Sextant Avionique and Britain's Smiths Industries in Europe, and Rockwell International in the US.