GE Splitting Into 3 Public Companies

General Electric ($GE@US) announced on Tuesday that it is splitting into 3 public companies as part of a plan to streamline its operations, reduce debt and help increase share prices. While the firm has not performed beautifully over the past few years, GE is still one of the most storied and stable businesses in the history of Corporate America. When the split was announced, shares of GE jumped 8.2% in premarket activity. Struggling since the 2008 financial crisis, investors have consistently put pressure on the business to do something—anything—to help it climb out of the doldrums. With this move, the Boston-based firm can manage 3 divisions that will be known as GE Renewable Energy, GE Power and GE Digital. These businesses plan to spin off in early 2024. GE also plans to segment out its healthcare company and will retain a near-20% stake in the firm in early 2023. CEO Lawrence Culp said, “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. Scott Strazik was tapped to helm the Renewable Energy business while Peter Arduini will lead the healthcare unit.