U.S. industrial giant General Electric will split into three companies following years of seeing its stock underperform, the company announced Tuesday.

The company will be divided into separate units focused on aviation, health care and energy. GE plans to spin off the health-care unit by early 2023 and the energy unit by early 2024, the company said in a news release.

GE shares, which were already up 55% over the last 12 months, rose more than 2% on Tuesday even as the broader market pulled back.

“By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees,” CEO Lawrence Culp said in a statement accompanying the announcement. “We are putting our technology expertise, leadership, and global reach to work to better serve our customers.”

The moves are a ways off so…

Read more…

Share.

Comments are closed.