Honeywell said the two businesses were together worth $7.5 billion (5.68 billion pounds)in annualised sales. The changes defy calls by one of its shareholders, activist hedge fund Third Point LLC, to spin off its aerospace division.

(This version of the story corrects headline and second paragraph to show value referred to annualised sales.)

(Reporting by Ankit Ajmera and Arunima Banerjee in Bengaluru)