Honeywell and Allied Signal announced yesterday that they are planning to merge in a $US14 billion transaction that promises to take the technology company into the top 50 largest US corporations.
An all-stock transaction, the merger will create an organisation with $US25 billion revenues and market capitalisation of around $US54 billion, according to Honeywell's local managing director, John Wolfraad.
Currently under the scrutiny of the US Antitrust and other government departments, the deal is expected to be finalised within three months. The fate of Honeywell's existing 1300 Australian employees is unknown at this stage, according to Wolfraad, who said he expects the merger to have little or no impact on its local operation in the "short term".
"During that three month period, there will be integration teams set up globally between the two organisations to look at these sorts of issues but there's unlikely to be any significant or major changes in terms of jobs and job cuts [in Australia]."