Home ›› 14 Nov 2021 ›› World Biz
Three multinational giants -- General Electric, Johnson & Johnson and Toshiba -- this week announced plans to split into multiple companies, joining a trend the firms hope will provide more growth opportunities.
It is a move in large part forced on them by financial markets, analysts say.
The break ups “represent a trend line that has been out there for 20 years ,” said Michael Useem, professor at the University of Pennsylvania’s Wharton School.
The big names joining the trend indicate the model of a huge, diversified conglomerate “is unequivocally on its way out,” he told AFP.
Useem, who specializes in corporate restructuring, said the move allows the companies “to become more focused on single markets.”
GE, like Japan’s Toshiba, announced it was splitting into three companies, involved in aviation, health and energy.
Toshiba, which had previously spun off several divisions, will break off infrastructure and electronic devices like semiconductors, leaving the flash memory business.
Meanwhile, pharmaceutical giant Johnson & Johnson on Friday announced plans to spin off its consumer health arm that sells Band-Aids and Tylenol from its pharmaceutical division that includes the single-shot Covid-19 vaccine.
