All things General Electric ($GE)

General Electric founded in 1892 will split into three public companies focused on aviation, healthcare and power.

In an effort to simplify its business, pare down debt, and breathe life into a battered share price, GE will split into healthcare, aviation, and energy companies. The split marks the end of the 129-year-old conglomerate that was once the most valuable U.S. corporation and a global symbol of American business power.

Source: WSJ

“This is the best way to fully realize the potential of these businesses,” Mr. Culp said in an interview.

Customers will gain from the splits, as independent boards with industry-specific expertise will focus more on individual businesses, helping customers and increasing the investor base. The GE board began to consider the plan in the spring, Mr. Culp said, as efforts to cut GE’s debt and improve operations had progressed enough to consider such a move. “We looked at this and other options,” he said. “It was clear this is the right path for GE.”

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General Electric is gearing itself up for the EV world by acquiring Opus One, which makes software for managing distributed power assets like energy storage, solar power generation, and wind farms.

The agreement provides GE’s energy division with a high-margin software-based solution for managing the Grid’s transition to increased levels of renewable power generation.

Anyone into EVs might be well aware of advanced V2Gs (Vehicle to Grid) technologies; the Grid is one of the crucial parts of EV technology and requires more sophisticated grid management software. Imagine loading the electrical Grid with so many cars; it may collapse, requiring management. With more penetration in the US, the electricity demand will spike up, and the peak demand times will keep on changing.

Here’s how controlled and uncontrolled charging impacts the grid, peak demands coincide with daily household demand

“Electric utilities around the world face new obstacles with the rapid growth of renewables and [distributed generating resources],” said Jim Walsh, general manager of GE Digital’s Grid Software business, in a company news release. “With an increased demand for renewable energy and electric vehicles in every region, challenges for grid and market operators are more acute every day.”

Note that GE was in damage control mode selling off many things to repay its debt; now that the debt is almost paid off, GE is back on the table for acquisitions.

How will this play out? Time will tell.