The combined companies will include worldwide manufacturing operations in plastics, chemicals and aerospace products. As part of the agreement, GE will assume an unspecified amount of Honeywell debt, and Honeywell's corporate headquarters in Morristown, NJ, will be closed.
Michael R. Bonsignore, chairman and CEO of Honeywell, will become a member of the GE board of directors and will be joined by two additional Honeywell directors. John F. Welch will remain chairman and CEO of GE until the end of 2001, through the transaction.
GE will use the GE-Honeywell brand name on key product lines.