General Electric (GE) will be divided into three separate companies, thus breaking up the health, energy and aviation businesses of the former powerful North American conglomerate. As reported by the company in a statement, this process will continue until 2024. The company’s shares were trading at a price of 10% at the close of Tuesday before the opening of Wall Street.
The Boston-based group has explained that the health care division will be the first to separate in early 2023. From there, GE will merge the renewables, electrical equipment and digital businesses into another company that it will separate in 2024. That will give light to the third company, GE Aviation.
This decision is one of the most radical changes carried out by Larry Culp, CEO of the company, since he took office in 2018. In practice, it marks the end of the empire built by Jack Welch, which he understood since the lease of aircraft to financial services.