GE to form 3 state-owned companies focused on aviation, health and energy
(RTTNews) – US conglomerate General Electric Co. (GE) on Tuesday announced plans to create three global public companies focused on aviation, health and energy. With this latest initiative, GE aims to form GE Aviation, GE Healthcare and the combined businesses of GE Renewable Energy, GE Power and GE Digital.
Continuing a tax-free spin-off of GE Healthcare, New York-headquartered GE is set to build a pure-play company at the center of precision healthcare in early 2023, in which GE plans to retain a 19.9% ââstake.
The company also aims to combine GE Renewable Energy, GE Power and GE Digital into one company, and then pursue a tax-free spin-off of the company in early 2024. Following these two transactions, GE will be a aviation-focused business. , the company said.
GE Chairman and CEO H. Lawrence Culp, Jr. said, â… By creating three industry-leading global public companies, each can benefit from greater focus, allocation. tailored capital and strategic flexibility to drive long-term growth and value. for customers, investors and employees. We put our technological expertise, leadership and global reach to better serve our customers.
With the proposed strategy to form three new companies, GE expects to incur one-time separation, transition and operating costs of approximately $ 2 billion and tax costs of less than $ 0.5 billion, which will depend on the specifics of the transaction.
The company also announced a management team for the three proposed companies. Culp will be non-executive chairman of healthcare company GE when it splits. He will continue to serve as CEO of GE until the second spin-off, when he will lead the aviation-focused GE company going forward.
Peter Arduini will assume the role of President and CEO of GE Healthcare effective January 1, 2022. Scott Strazik will be CEO of the combined renewable energy, power and digital businesses while John Slattery will continue to serve as CEO. ” hold the position of Chief Executive Officer of Aviation.
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