GE completes the three-way split to trade as separate companies

(Reuters) – General Electric completed its split into three companies on Tuesday, marking the end of an era for the pioneer industrial conglomerate that was once a symbol of corporate America.

The industrial giant’s aerospace and energy businesses will begin trading as separate entities on the New York Stock Exchange on Tuesday, more than a year after its healthcare business began trading on the Nasdaq.

The breakup is the culmination of CEO Larry Culp’s efforts to breathe new life into the company that has run into trouble, including the 2008 financial crisis that nearly bankrupted his most profitable company, GE Capital.

In late 2021, Culp announced the breakup that had eluded a generation of insiders after the company ballooned in size as it entered several businesses under its predecessors.

GE’s significance was so great that its financial arm was considered ‘too big to fail’ by the US government.

But as it lurched from crisis to crisis, GE, an original member of the blue chip Dow Jones Industrial Average, lost its place in the index in June 2018 and Culp, who took over as CEO after a few months, cut his dividend to a level penny to save money.

He began informally discussing the idea of ​​a split with advisers in 2021, Reuters reported.

Culp, who is now CEO of GE Aerospace, will ring the opening bell of the NYSE on Tuesday along with Scott Strazik, CEO of energy company Vernova.

A drone show in New York City prior to the split of General Electric into three companies: GE Aerospace, GE Vernova and GE Healthcare. (Gary Hershorn/Getty Images) (Gary Hershorn via Getty Images)

Some Wall Street industrial analysts have turned coverage of GE over to their aerospace and…

Read Complete News ➤

Benefits of eating guava for Americans