Brussels, 02/03/2001 (Agence Europe) - The European Commission opened an in-depth investigation into the planned merger between the American companies General Electric (GE) and Honeywell International Inc in order to understand, in more detail, the repercussions in the sector for aeronautical components. In fact, there are risks of strengthening a dominant position, given the strong presence of GE in the market for engines and that of Honeywell for avionics products and certain non-avionics products. This operation, presented as being the largest take-over in the history of the industry, follows on from a USD 44 billion offer, last October, presented by GE to Honeywell, in the form of a share swap (see EI of 23/24 October, p.8). Following a first investigation, the Commission was concerned over possible horizontal overlaps, notably in the market for large regional carriers, capable of noticeably reducing competition in this market, as well as vertical effects, in as much as Honeywell provides components to competing engine manufacturers. To this is added the danger of conglomerate effects stemming from a possible regrouping of aircraft engines, avionics and non-avionics products. The Commission will give its verdict in four months.