General Electric It will be divided into three independent entities that will at one time divide the powerful group into businesses focusing on healthcare, energy and aviation.
The health sector will be cut off in early 2023, according to a report released on Tuesday. Give It will combine its renewable energy, electricity and digital equipment businesses into a separate unit, which will be split in 2024. The rest will consist of company GE Aviation, The machine production function of the company.
This decision marks the most drastic and significant changes that CEO Larry Culp has made since taking office in 2018. Wide G.E. Jack Welch Its pioneers will no longer be interested in everything from aircraft leasing to power plants to financial services.
“What we are doing today is creating three of the best investment quality world leaders in healthcare, aviation and energy,” CEO Larry Culp said in an interview. “GE has been at the forefront of these markets for a long time and today we are preparing for another century of leadership.”
GE shares traded up about 8 percent in freemarket trading in the United States, up from 17 percent previously. GE said it expects to collect $ 2 billion in lump sum as part of the separation, conversion and operating costs associated with the project and less than $ 500 million in tax costs.
The Comprehensive Plan marks the end of an era that defined the vast majority of American companies of the 20th century. Follows the dissolution of many large and diversified companies Investors like to focus on width.
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