General Electric Announces Plan To Separate Into Three Independent Publicly Traded Companies

General Electric Announces Plan To Separate Into Three Independent Publicly Traded Companies

On November 9, 2021, General Electric (NYSE: GE GE , $93. 13, Market Capitalization: $102. 3 billion) announced its plan to form three investment-grade, industry-leading, global public companies focused on the growth sectors of aviation, healthcare, and energy. GE intends to execute a tax-free spin-off of the Healthcare business in early 2023, creating a pure-play company at the center of precision health and expects to retain a 19. 9% stake in SpinCo. This will be followed by combining GE Renewable Energy REGI , GE Power, and GE Digital into one business and then pursuing a tax-free spin-off in early 2024. Following these transactions, GE would operate as a leading aviation-focused company. The separation will result in three global, industry leading companies with distinct business characteristics, capital structure, and investment profiles. The proposed spin-offs of Healthcare (SpinCo 1) and the Renewable Energy and Power (SpinCo 2) business are intended to be tax free for GE and GE shareholders for US federal income tax purposes. The company expects to incur one-time separation, transition, and operational costs of ~$2 billion and tax costs of less than $0. 5 billion, depending on the specifics of the transaction. Moreover, incremental annual costs of $150 -$200