Industrial conglomerate Honeywell is set to split into three separate entities, following in the footsteps of manufacturing giants like General Electric and Alcoa. The move aims to make each business more agile and adaptable to changing markets.
The company will separate its automation and aerospace technologies businesses, with plans also announced for a spin-off of its advanced materials division. This decision was made after Elliott Investment Management revealed a stake of over $5 billion in the aerospace, automation, and materials company, pushing for the separation of these businesses.
Honeywell’s CEO Vimal Kapur believes that forming three independent companies will allow each to pursue tailored growth strategies and unlock significant value for shareholders and customers. The separation is expected to be completed by 2026, with the advanced materials spin-off anticipated to be finished by the end of this year or early next year.
This move reflects a trend among US conglomerates to simplify their structures, allowing each segment to operate more freely and respond to market changes. Other companies like Alcoa and GE have already undergone similar restructuring efforts, shedding their corporate entities to focus on core businesses.
Source: https://apnews.com/article/honeywell-24e46c1e34bfeb702acecead3fd98060