(Reuters) Shares of industrial giant General Electric rose more than 12% in premarket trading on Tuesday after the company announced it would split into three entities to streamline its operations.
The company’s three divisions will focus on energy, aviation, and healthcare. GE Renewable Energy, GE Power, and GE Digital will combine and spin-off in early 2024.
GE expects the three public entities to benefit from greater focus, strategic flexibility, and tailored capital allocation.
GE’s move is also part of its plan to cut down debt and boost the depressed stock. It was removed from Dow Jones Industrial Average in 2018 over declining valuation.
The split marks the end of its 129 years conglomerate status in which it previously ranked as the most valuable American company.
GE: NYSE is currently up +6.07% on premarket.
