AlliedSignal Inc. has agreed to buy Honeywell Inc., in a $13.8 billion stock deal that creates one of the nation's largest industrial manufacturers. But the move will also cost Minnesota a corporate headquarters and thousands of jobs.

The companies plan to save $500 million through cost-cutting, including the elimination of 4,500 jobs in the 18 months after the deal closes. Honeywell's Minneapolis headquarters will be closed. The companies' top executives said size and diversity were the motivating factors for the deal. The Honeywell merger would create a company with $25 billion in annual sales and a market capitalization of $45 billion. It will be based in Morristown, N.J., Allied's headquarters. It will retain the Honeywell name.

The deal has been approved by both boards. Honeywell shareholders will receive 1.875 shares of AlliedSignal stock for each of their shares.

Stories

June 18
Bonsignore Interview
MPR's Bill Catlin talks with Honeywell CEO Michael Bonsignore about the sale.
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June 8
Employees React
MPR's Mark Zdechlik talks to Honeywell employees about the sale.
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June 7
This Time It's True.
MPR's Bill Catlin reports that Honeywell has often been the target of merger rumors.
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Those Left Behind
The loss of Honeywell concerns those in Minneapolis' Phillips neighborhood - Honeywell's home turf.
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The Exodus
Honeywell's departure is another in a series of high-profile moves out of Minnesota by companies headquartered there. MPR's Mark Zdechlik looks at what happens when a headquarters leaves.
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The History
Honeywell, in one fashion or another, has been in Minnesota since the invention of the "Damper Flapper." MPR's John Rabe looks at the company's history.
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