GE makes plans to sell its electrical engineering business
General Electric is currently looking at potentially selling its electrical engineering business which it purchased for just over $3 billion back in 2011. According to industry experts, the industry leader is continuing to look to remove unwanted assets from its business.
The CEO of GE, John Flannery, has suggested to industry analysts and investors that he was open to splitting up the business and potentially developing individual units in power, healthcare or aviation was a possibility.
GE purchased the electrical engineering business, Converteam in 2011 to enhance its visibility within the sector. The energy industry was viewed as the most profitable the part of the business at GE, however, demand for its products have declined. Sources have now revealed that converteam, which was rebranded to GE Power Conversion in 2012 is now, in fact, losing money and if sold will be at a price less than the initial purchase value. GE is currently exploring options to remove certain assets of Converteam before a commencing a sale process.
With a reduction in stock value, the CEO is under some pressure from investors to improve the business performance of GE. Flannery has suggested the GE would sell in excess of $20 billion in operations to improve its overall financial performance.
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