The European Commission has decide to open an in-depth investigation into AlliedSignal`s proposed merger with Honeywell. This follows an initial, one-month investigation which revealed an overlap in the area of avionics products that, the Commission fears, could lead to the creation or strengthening of a dominant position in Europe.

In a joint statement, AlliedSignal and Honeywell say that they "do not anticipate that any areas outside the aerospace businesses will be affected" by the investigation. They expect it to finish in time for them to complete their deal in the autumn. The EC says the review will take a maximum of four months.