US industrial group General Electric is to split itself into three public companies from 2023, a big step in chief executive Larry Culp’s plan to streamline the sprawling conglomerate.

The companies will focus on healthcare, energy and aviation.

GE Healthcare will be spun off in 2023, with GE retaining a 19.9 per cent stake in the unit.

GE Renewable Energy, GE Power, and GE Digital will be combined into one energy-focused company that will be spun off in 2024. Once these transactions are completed, the original GE will focus on aviation.

“By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees,” Culp said.

“Today is a defining moment for GE, and we are ready . . .. And we’re not finished — we remain focused on continuing to reduce debt, improve our operational performance, and strategically deploy capital to drive sustainable, profitable growth,” he added.

The company said the changes came on the back of a strengthened financial position, including a more than $75bn reduction in gross debt between 2018 and 2021.