GE to spin off combined renewables and power business in break-up plan

General Electric (NYSE:GE) on Tuesday announced plans to separate itself into three independent public companies focused on aviation, healthcare and energy.

The GE Renewable Energy, GE Power and GE Digital businesses will be first combined and then spinned off in early 2024.

A spin-off of GE Healthcare is planned for early 2023, while GE will remain as an aviation-focused company after the spin-offs.

GE chairman and chief executive H. Lawrence Culp, Jr. said the decision will allow each of the three companies to benefit from greater focus, tailored capital allocation and strategic flexibility.

The step has been enabled by the group’s strengthened financial position and operating performance, according to the announcement.

“The momentum we have built puts us in a position of strength to take this exciting next step in GE’s transformation and realize the full potential of each of our businesses,” Culp said.

GE says the combined renewable energy and power business will be positioned to lead to energy transition. Its offering will include onshore and offshore wind turbines, gas and steam turbines, grid technologies and carbon-free power sources like hydro, nuclear and hybrids.

The business has an installed base of more than 400 GW of renewable energy and more than 7,000 gas turbines.

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