General Electric Plans to Break Itself Into Three Companies
The company has already moved to wind down its once vast financial arm and spin out or sell various businesses under pressure from investors.
General Electric plans to break itself up into three companies.
A General Electric jet-engine factory in Lafayette, Ind., in 2017.
Nov. 9, 2021, 6:59 a.m. ET
General Electric announced on Tuesday that it planned to break itself into three publicly traded businesses, the latest effort by the 129-year-old industrial conglomerate to simplify its business and lift its stagnant stock price.
The company said it would spin off its health care division in early 2023, and its energy businesses a year later. That would leave its aviation unit as its remaining business, which would continue to be led by its chairman and chief executive, H. Lawrence Culp.
Tuesday’s announcement is perhaps the most drastic effort yet by G.E. to reinvent itself, as it has struggled to bolster its fortune following the 2008 financial crisis. The company has moved to wind down its once vast financial arm and spin out or sell various businesses under pressure from investors.
Shares in G.E. were up more than 10 percent in premarket trading following the announcement.
This is a developing story. Check back for updates.