November 10, 2021 Read More →

GE renewable spinoff emerges as attractive possibility for investors

Reuters:

General Electric Co’s (GE.N) plan to spin off energy units into a standalone company could attract investors looking for a well-known name in renewables if they can overlook legacy fossil-fuel operations, financial experts said.

Earlier on Tuesday, the 129-year-old conglomerate outlined a plan to split into three publicly traded companies focused on energy, healthcare and aviation. 

The energy unit will combine existing wind and gas-fired power turbines and services, and software businesses. The spinoff would be complete in 2024, GE said.

“Customers need GE at its best and at its most focused to help them navigate the energy transition,” Chief Executive Officer Larry Culp said in an interview, referring to utilities and others now moving to solar, wind and hydropower.

The plan echoes that of GE rival Siemens AG (SIEGn.DE), which in 2020 spun off its power division to form Siemens Energy. It is also similar to electric utilities Enel ENEI.MI and Iberdrola’s IBE.MC embrace of renewable power over fossil fuels.

[Liz Hampton and Rajesh Kumar Singh]

More: GE energy spinoff aims to capture interest in renewables

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