Background[ edit ] Comcast was, at the time, the largest cable television provider in the United States. It also owned a number of major cable networks, including E! After the failed Disney deal, Comcast focused on its existing networks along with its Comcast SportsNet regional sports networksand acquired a stake in the movie studio MGM. The deal included an option for General Electric to sell further stakes in the company to Comcast over a seven-year period, or Comcast to buy stakes at "specified times".
State Bar of Georgia November 29, It is a pleasure to be here today to discuss the Department of Justice perspective on its decision not to challenge GE's proposed acquisition of Honeywell. It is rare that an Antitrust Division decision not to challenge a transaction generates such substantial discussion.
But in this instance, of course, the fact that the United States and the European Union reached different conclusions about the transaction has prompted much commentary and debate -- and with good reason. The last ten years have seen explosive growth in the number of countries with antitrust laws and agencies, reflecting global recognition that competition, rather than regulation, produces the most efficient outcomes for the benefit of producers and consumers alike.
This proliferation of competition enforcement regimes, together with the attendant risk of divergent outcomes, has made cooperation among the world's antitrust agencies a necessity.
Recently, we marked the tenth anniversary of the cooperation agreement between the U. At least equally importantly, we are currently discussing with the EU ways to improve upon the important strides we have made.
The EU's decision to block the transaction triggered a firestorm of criticism, not just from the U.
Indeed, we have been criticized by some as being overly critical. In our view, for cooperation to be meaningful, i.
It is in that spirit that I provide my remarks today. Our team also worked closely with the Department of Defense, which had an important interest in the transaction because of the various military applications of some of the companies' products.
We conducted a thorough, five-month investigation, interviewing over 75 witnesses and reviewing hundreds of boxes of documents. Throughout the investigation, we worked in cooperation with the EU team investigating the transaction, conducting several joint witness interviews.
We met with every complainant who asked to meet with us, in some instances multiple times. We hired an outside consulting economist who was generally hawkish on vertical foreclosure theories to assist us in evaluating the transaction, including the economic papers submitted by the complainants.
Our investigation revealed that GE and Honeywell operate in intensely competitive markets. GE is a leading producer of jet engines for large commercial aircraft and large regional jets.
Honeywell is a leading producer of engines for small regional and corporate jets and of avionics and nonavionics systems, such as landing gear and auxiliary power units APUs.
It faces different rivals in each of its lines of business. For avionics, its principal rivals are Rockwell Collins and Thales. We did find, however, that GE and Honeywell had substantial horizontal overlaps in U. On May 2,we announced that we had reached an agreement in principle with the parties that would resolve our limited competitive concerns with the transaction and allow the transaction to proceed.
GE agreed to divest Honeywell's helicopter engine business and to license a new competitor to maintain and repair certain Honeywell engines.
We found no factual or economic basis on which to challenge the merger on broader grounds. The EU had different concerns about the transaction and issued its Statement of Objections on May 8, We continued our dialogue with the Commission until the day it reached its decision to block the deal.
On July 3,the European Commission issued its decision to block the transaction.In recent years, the stock market has taken note of a revival at the industrial company General Electric (NYSE:GE).
GE's shares have more than doubled since early , buoyed by a growing. CleanTechnica is the #1 cleantech-focused news & analysis website in the US & the world, focusing primarily on electric cars, solar energy, wind energy, & energy storage.
May 27, · Power Generation General Electric is one of the worlds largest suppliers of power generation technologies. This includes coal, oil, nuclear energy, natural gas, along with renewable resources such as wind, water, solar, geothermal, and alternative fuels.
In December , Comcast announced its intent to acquire a majority stake in the media conglomerate NBCUniversal from General Electric (GE). The planned acquisition was subject to scrutiny from activists and government officials; their concerns primarily surrounded the potential effects of the vertical integration that the acquisition could create, as Comcast is also heavily involved in cable.
Vertical Integration At General Electrics. Chapter 6 Vertical integration Definition: Corporate Strategy is a firms theory of how to gain a competitive advantage by operating in several businesses simultaneously. The second key factor contributing to GE's dominance in engines, according to the EU, was its vertical integration into aircraft purchasing, financing and leasing through GECAS, which the EU describes as the largest purchaser of aircraft in the world.