General Electric (GE), the storied company started by Thomas Edison, is splitting itself into three.
Each of the new companies will be publicly traded, GE announced Tuesday morning. They will focus on:
GE Healthcare will be created in 2023 and GE plans to retain a 19.9% stake. It will roll GE Renewable Energy, GE Power, and GE Digital into a single business, which is slated for early 2024. That leaves the aviation segment for GE itself.
“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. We are putting our technology expertise, leadership, and global reach to work to better serve our customers,” GE chairman and CEO Larry Culp said in a written statement.
In August, GE did a reverse stock split.
Last December, the company agreed to pay a $200 million penalty to the Securities and Exchange Commission to settle charges for disclosure failures in its power and insurance businesses.
Its stock was $115.70 per share, up $7.28 or 6.71%, in pre-market trading.