General Electric (GE) said on Tuesday it would be divided into three public companies as multilevel US industrial conglomerates seeking to simplify their business, Pare destroyed debt and inhaled the battered stock price.
Split marks the end of the 129-year conglomerate which was once the most valuable US company and a global symbol of the strength of the American business.
GE shares rose 6% in morning trade, reaching more than 3 years.
The Boston-based company said three businesses would focus on energy, health care, and flights.
It will combine GE renewable energy, GE power, and GE digital and spin off business at the beginning of 2024.
GE will also separate health care companies, where he hopes to defend the shares of 19.9%, at the beginning of 2023.
After division, this will be Become a flight company, led by CEO GE Larry Culp.
This is the brave effort under Culp, which takes control of GE in 2018, to simplify the company’s business.
CULP has focused on reducing debts and increasing cash flow by streamlining operations, cutting overhead costs and faster collections of customers.
These steps have caused an increase in the GE balance sheet, put it on track to reduce the debt of more than $ 75 billion at the end of 2021.
CUP does not expect spinoffs to deal with regulatory problems or employment and that does not exist.
The investor pressure behind the spin-off decision.
General Electric to break into 3 companies to simplify business, Pare Debt
