Once Mighty Conglomerate GE to Split Into Three Units
upstart writes:
Once mighty conglomerate GE to split into three units:
General Electric Co. will split into three separate companies, breaking up the once-mighty conglomerate into standalone businesses focused on health care, power and aviation. The shares surged.
The health unit will be spun off in early 2023, according to a statement Tuesday. GE will combine its renewable energy, power equipment and digital businesses into a separate unit that will then be spun off in early 2024. The remaining company will consist of GE Aviation, the company's engine-manufacturing operation.
The move ends years of speculation about the future of GE, long one of the most admired U.S. companies but one that's struggled since the global financial crisis more than a decade ago. Since then it's been retrenching from its once sprawling conglomerate structure, including the sale of the bulk of the GE Capital finance arm.
[...] With operational improvements to boost cash flow and profit margins, GE is on target to have reduced its debt burden by more than $75 billion over three years by the end of 2021, the company said. There are opportunities for further progress, it said in an investor presentation.
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