EU committee holds meeting on GE deal

A European Union committee meets today to consider whether General Electric Co

A European Union committee meets today to consider whether General Electric Co. should be allowed to buy Honeywell International Inc. in a competition review that has drawn sharp US criticism.

US regulators have already approved the $42 billion deal, but EU officials are worried that the combined company would dominate the avionics and jet engine fields, depriving rivals of the income they need to develop new products.

Today's advisory committee meeting, attended by representatives of the 15 EU countries and members of a merger task force, is charged with making a recommendation on the deal ahead of a July 3 vote by the full European Commission.

Many involved in the process have said they believe the EU will block the deal, and analysts said the recommendation of today's meeting was likely to be negative.

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European officials have faced a barrage of criticism from US officials, including President Bush, members of his Cabinet, and members of Congress. EU Competition Commissioner Mr Mario Monti said the Commission will ignore what he called attempts at political intervention.