The American industrial group General Electric will split itself into three listed companies from 2023, which is a big step for CEO Larry Culp (Larry Culp) to streamline this huge conglomerate.
The two companies will focus on healthcare, energy and aviation.
GE Healthcare will be split in 2023, and GE will retain 19.9% of the shares.
GE Renewable Energy, GE Power and GE Digital will merge into a company focused on energy, which will be split in 2024. Once these transactions are completed, the original GE will focus on aviation.
“By creating three industry-leading global listed companies, each company can benefit from more focused and tailored capital allocation and strategic flexibility to drive long-term growth and value for customers, investors, and employees,” Carl Pu said.
“Today is a decisive moment for GE, we are ready… and we are not over yet-we are still focused on continuing to reduce debt, improve our operational performance, and strategically deploy capital to drive Sustainable profit growth,” he added.
The company said that these changes are due to strengthened financial conditions, including a reduction of more than $75 billion in total debt between 2018 and 2021.