GE to split into 3 companies

General Electric (GE) Co. will split into three companies, beginning in 2023, in a breakup of one of the world’s most valuable conglomerates.  GE will spin off its health-care business in early 2023, and combine renewable energy, fossil-fuel power and digital units into a single entity that will be spun off in 2024. The firm announced Nov. 9. The remaining company will consist of GE Aviation, its jet-engine division. [GE Aviation has two manufacturing plants in Mississippi at Batesville and Ellisville.] "(W)e're ... creating three outstanding investment-grade, global leaders in health care, aviation and energy,” CEO Larry Culp said in an interview with analysts. GE shares rose as high as 7.1 percent Tuesday, the most since May 27. The company expects to take a one-time $2B charge from separation, transition and operational costs, and tax costs of less than $500M. “The breakup could generate a 20 percent upside to GE’s current share price,” said Deane Dray, an analyst with RBC Capital Markets. There will be “attractive value to be unlocked," he opined. Culp's vision is a rebuke of his predecessors who built the company into a juggernaut with businesses spanning television, finance, energy and many other unrelated markets. GE has fallen. Twenty years ago, it was the world’s largest company with a market capitalization of $401B. As of Nov. 8, there were dozens with bigger market caps in the S&P 500. (Source: Bloomberg 11/09/21) GE will split into three units, ending conglomerate for good - BNN Bloomberg