Multinational conglomerate General Electric (GE) announced Tuesday, it’ll divide itself into three public companies focused on aviation, healthcare and energy.
The company, founded in 1892, is now trying to specialise in aviation, healthcare and energy. The new ventures are going to be called– GE Aviation, GE Healthcare and GE Renewable Energy and Power.
According to a press release released by GE, the electrical giant expects to retain a 19.9% stake within the healthcare unit.
The parent company will specialise in the aviation business, which can be led by Mr Culp.
“By creating three industry-leading, global public companies, each can enjoy greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for patrons , investors, and employees,” GE chairman and chief executive Lawrence Culp said during a statement.
Scott Strazik will head the combined Renewable Energy, Power and Digital business and Peter Arduini will lead GE Healthcare, the corporation said during a statement.
GE shares were trading up about 8% in premarket U.S. trading after earlier soaring the maximum amount as 17%. GE said it is expecting to require a one-time $2 billion charge from separation, transition and operational costs tied to the plan, plus tax costs of $500 million.