GE: exits healthcare business, Baker Hughes to be divested

(CercleFinance.com) - GE plans to divest its healthcare division and to fully separate its oil services unit, Baker Hughes, to focus on aviation, power and renewable energy, the group said on Tuesday.


GE expects to create GE Healthcare as a standalone, pure-play company by selling approximately 20% of its stake in the business, bringing cash, and by distributing the remaining 80% to GE shareholders.

The company also plans to fully separate its 62.5% interest in Baker Hughes over the next two to three years.

GE - which wants become a "simpler, stronger" company - also plans to reduce its net debt by approximately 25 billion dollars by 2020, while maintaining over 15 billion dollars of cash on its balance sheet.

The conglomerate also wants to make GE Capital smaller and more focused and intends to materially shrink the balance sheet of GE Capital, targeting sales of 25 billion dollars in energy and industrial finance assets by 2020.

After all these announcements, GE shares were up over 5% in pre-market trading on Tuesday.

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