General Electric (NYSE:GE) Company shares perked up to new three-year highs after it announced that it will be splitting into three separate public companies.
GE Aviation and GE Healthcare will become independent, with the third company comprising of GE Renewable Energy, GE Power and GE Digital businesses.
GE Healthcare is expected to be formed in early 2023, with the other two segments the following year.
The company hope that the split, which will result the bodies being run as independent organisations, will better position each business to deliver long-term growth.
It said this would be achieved through deeper operational focus, tailored capital allocation and dedicated board of directors with specialist expertise.
The company at one point was the largest in America, before being overtaken by Microsoft in the late 90s.
However, it is not as large and powerful as it used to be, with its market cap at US$125bn, almost US$400bn smaller than what it was 20 years ago.
The powerhouse never really covered from the 2008 final crash, where its stock dropped by 42%.
The subsequent departure of then CEO Jack Welch did not help, with it becoming increasingly clear that its operations were stretched, forcing it to return to its manufacturing roots after it stripped down the GE Capital division.
COVID-19, like all other companies, massively impacted GE, in particular its Aviation division, which was responsible for most of its profitability.
GE is currently trading at US$114.69, up from the previous close of US$108.41.