The US conglomerate General Electric is going public with its medical subsidiary. At the start, the papers increase and the parent company also wins. In the coming year, the energy division will be split off. The former industrial giant then focuses on aviation.
The spin-off of the medical technology business has paid off for the shareholders of the US conglomerate General Electric (GE). GE HealthCare’s shares rose on the Nasdaq technology exchange by more than five percent above the calculated issue price. But GE shares also gained. Last year they had lost eleven percent. The conglomerate is worth a good 72 billion dollars on the stock exchange. GE retains 19.9 percent of the shares in GE HealthCare, a manufacturer of X-ray and ultrasound equipment, diagnostics and patient monitoring systems with 51,000 employees.
At the beginning of 2024, GE also wants to spin off energy technology – from coal-fired power plants to wind turbines – and list it independently as GE Vernova. GE will then focus on manufacturing aircraft engines and airplanes as GE Aerospace. CEO Larry Culp, who is also set to lead GE HealthCatre’s board of directors, wants the split announced in November 2021 to reduce the debt burden and get the stock back on its feet.
Medical technology has been GE’s flagship business over the past few years amid strong demand for its devices and rising prices. With an aging society, the market segments in which GE Healthcare operates are expected to grow to around $102 billion over the next three years. GE HealthCare expects annual growth of around five percent in the medium term. Last year sales were $18 billion.
The company moves to the S
As announced in November, GE has booked one share of the new GE HealthCare division into its custody account for every three GE shares it holds. That’s why he optically gave way to the GE course.
