By Frances Robinson
BRUSSELS--The European Commission Monday approved the proposed
acquisition of the European part of Honeywell International Inc.'s
(HON) friction material business by another large U.S. friction
material manufacturer, Federal-Mogul Corp. (FDML), subject to
conditions.
Both companies produce friction material, in particular brake
pads for trucks and passenger cars. The clearance is conditional
upon the divestment of the business at a German and a French
factory producing brake pads for commercial and light vehicles.
In January, Honeywell agreed to sell its friction materials
business unit to Federal-Mogul Corp.'s European business for
roughly $155 million. The deal includes two plants in China and
Romania.
As the soft economy slows revenue growth, Honeywell--a maker of
aerospace, building-control and safety products--has focused on
boosting its margins to improve its profit. The company has spent
hundreds of millions of dollars in recent years to streamline
itself, focusing largely on Europe.
Write to Frances Robinson at frances.robinson@dowjones.com
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