Shares of General Electric Co. GE, -0.29% soared 15.5% in premarket trading Tuesday toward the highest levels seen since January 2018, after the industrial conglomerate announced plans to split up into three publicly traded companies. The company said it plans to spin off its GE Healthcare business in early 2023, with GE retaining a 19.9% stake. GE said it will also combine its GE Renewable Energy, GE Power and GE Digital businesses then spin that combination off in early 2024. After the splits, GE said it will remain an Aviation focused company. Current GE Chief Executive Larry Culp will be non-executive chairman of GE Healthcare after it is spun off, and will service of CEO of GE until the second spinoff, at which time he will lead the GE aviation-focused company. “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,” Culp said. GE’s stock has gained 25.5% year to date through Monday, while the S&P 500 SPX, +0.09% has advanced 25.2%.
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