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GE's plan to get even smaller

GE CEO John Flannery (left) with former GE CEO Jeff Immelt (right). Photo by Stepanie de Sakutin/AFP/Getty Images).

General Electric said Tuesday that it plans to spin off its health care business and sell its 62.5% stake in oil services company Baker Hughes. It also wants to "materially shrink the balance sheet of GE Capital" by selling $25 billion of energy and industrial finance assets by 2020.

Why it's a big deal: Because GE's prior de-conglomerizing, including yesterday's $3.25 billion sale of its distributed power unit, was just a palate cleanser. This is the main course, and it's got all the fixin's.