The demerger decision marks the end of the company’s 129-year history as a conglomerate.
American the conglomerate General Electric (GE) intends to split into three separate listed companies.
The three new companies will focus on aviation, health technology and energy, the company said in a statement.
The health technology company will be spun off in early 2023 and the company focusing on renewable energy and energy technology in early 2024.
The current company will be left with aerospace technology-related businesses. Current CEO of GE Lawrence Culp will remain in charge of this company.
According to GE, its business units, as independent companies, will be able to grow better in the long term than as a single conglomerate.
Investors welcomed the split news. GE’s stock had risen just over 5 percent on the New York Stock Exchange in the evening.
Distribution decision marks the end of the company’s 129-year history as a conglomerate. GE has been the epitome of a conglomerate and was once the most valuable company in the United States and a symbol of the country’s economic power.
Through the demerger, GE is trying to reduce its debt and revive its weakened share price over several years. Due to the reduced market value, the company was removed from the Dow Jones index in 2018, the news agency Reuters reports.
GE has sold numerous of its businesses in recent years to simplify its business structure. The company’s revenue rose to $ 180 billion in 2008, but last year it was just $ 79.6 billion.
GE’s difficulties stem from the 2008 financial crisis. Investors have doubted the company’s promises of a turnaround.
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