Nov 9, 2021 - Economy

General Electric to break up into 3 independent companies

Jacob Knutson

A General Electric employee between wind turbine nacelles during the construction of a wind farm near Saint-Nazaire, France, in September 2021. — A General Electric employee between wind turbine nacelles during the construction of a wind farm near Saint-Nazaire, France, in September. Photo: Sebastien Salom-Gomis/AFP via Getty Images

General Electric announced Tuesday it will break itself into three independent companies focused on aviation, health care and energy.

Why it matters: The planned split of the once industrial powerhouse comes after years of seeing its stock underperform and the buildup of high levels of debt.

What they're saying: "The world demands — and deserves — we bring our best to solve the biggest challenges in flight, health care and energy," GE CEO Lawrence Culp said in a statement.

"By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation and strategic flexibility to drive long-term growth and value for customers, investors and employees," he added.

The big picture: It hopes to spin off GE Healthcare in early 2023 and combine GE Renewable Energy, GE Power and GE Digital into one business in early 2024.

GE itself will continue on as an aviation-focused company led by Culp.

Go deeper: Meet General Electric's flexible power transformer

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General Electric to break up into 3 independent companies

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