One company will work in aviation, the other in healthcare and the third in energy.
9. November 2021 or 15:50 SETA
Bratislava. US industrial conglomerate General Electric will be split into three separate companies.
The conglomerate announced, on Tuesday, the establishment of companies whose shares will be publicly traded, one in the aviation field, the other in the production of medical equipment, and the third in the energy field. The portal reports it cnn.com.
General Electric has said it wants to separate its medical technology business in early 2023 and will run its power business in early 2024.
After this report, the value of the conglomerate’s shares rose by 12 percent before the opening of regular trading on the exchange.
“By creating three global businesses, each will be able to benefit from greater focus, dedicated capital allocation and strategic flexibility, which will lead to long-term growth and value for customers, investors and employees,” said Larry Kolb, Group CEO. Press release.
General Electric has been struggling since the collapse of its banking division during the financial crisis, and also because the company made a disastrous choice in the fossil fuel industry as the world began focusing on renewable and cleaner energy.
Larry Kolb has been selling assets and restructuring the business since joining the conglomerate president in 2018 to reduce costs and reduce significant debt.
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