general Electric (GE) said on Tuesday it would split into three public companies as the US industrial conglomerate tries to ease its business, reduce debt and revive share prices. The split marks the end of the 129-year-old conglomerate that was once the most valuable American corporation and a global symbol of American trading power. GE shares were up 6% in morning trading, hitting a 3-year high.
The Boston-based company said all three businesses would focus on energy, healthcare and aviation. it will combine GE Renewable Energy, GE Power, And GE Digital and will demerge the business in early 2024. GE Healthcare will also liquidate the company, which it expects to retain a 19.9% stake, in early 2023.
Post-split, it will become an airline, which will be headed by GE CEO Larry Culp, this is the boldest attempt clup, who took over the reins of GE in 2018 to simplify the company’s business.
Culp has focused on reducing debt and improving cash flow by streamlining operations, cutting overhead costs and faster collections from customers. The measures have improved GE’s balance sheet, keeping it on track to reduce more than $75 billion of debt by the end of 2021. Culp did not expect the spin-off to face any regulatory or labor issues and there was no investor pressure behind the spin-off decision.
The Boston-based company said all three businesses would focus on energy, healthcare and aviation. it will combine GE Renewable Energy, GE Power, And GE Digital and will demerge the business in early 2024. GE Healthcare will also liquidate the company, which it expects to retain a 19.9% stake, in early 2023.
Post-split, it will become an airline, which will be headed by GE CEO Larry Culp, this is the boldest attempt clup, who took over the reins of GE in 2018 to simplify the company’s business.
Culp has focused on reducing debt and improving cash flow by streamlining operations, cutting overhead costs and faster collections from customers. The measures have improved GE’s balance sheet, keeping it on track to reduce more than $75 billion of debt by the end of 2021. Culp did not expect the spin-off to face any regulatory or labor issues and there was no investor pressure behind the spin-off decision.
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