Honeywell Splits In Three, Forms Standalone Aviation Company

Honeywell announced it's splitting its huge company into three separate entities including one that concentrates on aviation. The company, described as one of the U.S.'s last big conglomerates, will divide into aviation, automation and advanced materials businesses. The decision came after pressure from an activist investor, Elliot Management, bought $5 billion in stock late last year. Bombardier, which signed a $17 billion deal to develop and buy avionics, engines and satellite communications systems for its long-range business jets last year, applauded the move. "I think having more focus is never a bad thing," said Bombardier CEO Eric Martel.

Analysts say the aviation company should be worth about $104 billion. The aerospace division has been Honeywell's most profitable and accounted for about 40% of the company's revenue. It sells a wide range of products for business jets and airliners. The split should be complete in late 2026.