U.S. industrial giant General Electric will split into three companies following years of seeing its stock underperform, the company announced on Tuesday.
The company will be divided into separate units focused on aviation, health care and energy. GE plans to spin off the health-care unit by early 2023 and the energy unit by early 2024, the company said in a press release.
Shares of GE surged in premarket trading after the announcement.
“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,” CEO Lawrence Culp said in a press release.
The name GE will live on with the aviation company after the move is complete, and Culp will continue to lead that unit, the company said.
The company has been weighed down by high levels of debt in recent years that have drawn skepticism on Wall Street. The capital structures of the new firms will be announced at a later date, GE said.
This is breaking news. Please check back for updates.
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