General Electric Completes Historic Split into Three Companies
The demerger aims to sharpen focus on core businesses, potentially boosting growth and shareholder value.
- General Electric has completed its demerger into three independent companies: GE Aerospace, GE Vernova, and GE Healthcare.
- The split aims to allow each entity to focus on its core businesses, potentially enhancing long-term growth and shareholder value.
- GE Aerospace and GE Vernova have outperformed the Dow Jones Industrial Average, with shares doing better than most American spin-offs.
- The breakup follows a history of acquisitions and losses, with recent efforts significantly reducing GE's debt by about $100 billion.
- The future success of the new entities may face challenges from cyclical industries and political changes, but reorganization itself is not seen as a current obstacle.