US engineering giant Honeywell has reached a deal to rid itself of its asbestos liabilities by selling its Bendix brakes parts business to parts company, Federal-Mogul.
Under the deal Federal-Mogul will gain Honeywell's assets in exchange for taking on asbestos-related liabilities.
The move is the latest in a line of settlements by engineering giants to rid themselves of asbestos liabilities. ABB recently reached a $1.1bn settlement, and Halliburton agreed to settle for $4.1bn in cash and equity.
Asbestos plaintiffs attacked the move, telling the FT.com: "It's just appalling. It's just a perversion of the whole system."
Federal-Mogul said it would take all the asbestos liability, but would be able to pay out future claims with Honeywell's $2bn insurance provision.
