GE Splits Into Three, Marking the End of an Era

General Electric (GE) has finally completed its long-awaited breakup into three separate companies. This move signifies the end of an era for the once-mighty industrial conglomerate that was a titan of American business.

The three new companies are:

• GE Aerospace: This is the former cash cow of GE and is expected to have a market value exceeding $100 billion. It manufactures jet engines for major aircraft manufacturers like Boeing and Airbus. GE Aerospace stock (GE) will begin trading on the NYSE.
• GE Vernova: This arm will focus on the energy business. The GE Vernova share price (GEV) is not yet available as the company just started trading today, April 2nd, 2024.
• GE HealthCare: This business began trading independently over a year ago.

A Breakup Culminated by CEO Larry Culp’s Efforts

This breakup is the brainchild of GE’s current CEO, Larry Culp. He took charge in 2018 when the company was facing significant challenges, including the near-bankruptcy of its finance unit, GE Capital, during the 2008 financial crisis.

GE’s struggles led to its removal from the prestigious Dow Jones Industrial Average index in 2018. Culp also had to slash the company’s dividend to conserve cash.

A Historic Transformation

CEO Larry Culp sees the completion of the breakup as a historic milestone. GE Aerospace stock (GE) will begin trading under the symbol “GE” on the New York Stock Exchange (NYSE), while GE Vernova (GEV) will trade under a separate symbol.

Analysts predict a bright future for GE Aerospace, estimating its market value to be over $100 billion. The company itself forecasts an operating profit of $10 billion by 2028 and intends to distribute 30% of its net income as dividends.

This breakup marks the end of an era for GE, but the three new companies that emerge from it, including GE Vernova (GEV), promise exciting opportunities in their respective sectors. We will be watching closely to see how the GE Vernova share price performs in the coming days and weeks.

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