Will corporations eventually grow in their own way? Siemens and Philips sell shares of the company or list them on the stock exchange. Now the US rival GE has crushed itself.
BOSTON – General Electric (GE), a US-based industrial group, wants to split into three companies.
As the group announced in Boston on Tuesday, companies will be created for another company that will include businesses around aviation, medicine, renewable energy, power generation and digitization. The stock had gained 17 per cent before the IPO.
GE Healthcare is expected to be disabled by the start of 2023 and will focus solely on proper medicine. GE itself wants to retain a 19.9% stake. The spin-off of the merged energy business should be completed by the beginning of 2024. Then, the rest of the group should be a company that focuses on aviation. This is how GE aircraft engines are built.
Approval from the committees and authorities is yet to be obtained. GE estimates that the cost of reconstruction is about $ 2 billion and less than half a billion dollars in taxes. Management expects strong long-term growth from the split. Rivals Philip and, above all, Siemens have already taken a similar path.
The ongoing corporate restructuring of GE thus culminates in a grand conclusion. The company had long planned to focus more on the industrial business and reduce debt. To this end, management announced in the spring, for example, that GE would merge its aircraft leasing division Gecas with Irish rival Aircap, bringing in $ 23.9 billion. Through the split, GE will be able to cash in shares of Aircap and oil field service provider Baker Hughes.
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