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GE Vernova set for April spin-off as independent energy firm

EditorLina Guerrero
Published 02/15/2024, 06:43 PM
Updated 02/15/2024, 06:43 PM
© Reuters.

BOSTON - General Electric (NYSE:GE) has taken a significant step towards the spin-off of its energy segment, GE Vernova, with the filing of a Form 10 registration statement with the U.S. Securities and Exchange Commission.

The move, announced Thursday, is a key part of GE's strategic plan to establish GE Vernova as a standalone public company and marks the latest development following GE's robust performance in 2023.

GE Vernova, which is expected to list on the New York Stock Exchange under the ticker symbol GEV, is slated to separate from GE in early April. The spin-off is contingent on final approval from the GE Board of Directors, among other customary conditions, and is intended to be tax-free for U.S. federal income tax purposes.

According to GE Chairman and CEO H. Lawrence Culp, Jr., the spin-off will launch GE Vernova as an independent entity poised to drive electrification and decarbonization on a global scale. Culp emphasized the company's strong financial position, which will support the creation of two well-capitalized, investment-grade entities: GE Vernova and GE Aerospace.

GE Vernova, led by CEO Scott Strazik, is described as a purpose-built company with a focus on the electric power industry. The company expects to leverage its position in a $1.4 trillion market, where it currently serves 20% of the growing demand. With over 80,000 employees in more than 100 countries and a commitment to invest $1 billion in R&D in 2024, GE Vernova aims to innovate and advance global sustainability.

The Form 10 details GE Vernova's organization into three operating segments: Power, Wind, and Electrification. These segments encompass a range of technologies and services critical to the generation, transfer, and storage of electricity. Additionally, GE Vernova's Accelerator businesses, which include Advanced Research, Consulting Services, and Financial Services, are expected to support its core operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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