American conglomerate General Electric (GE) will merge its GE Power with energy technologies company GE Energy Connections to form a single power-focused entity.
Operating under the name GE Power, the combined unit is expected to help GE drive improved customer focus, reduce costs and ensure lesser redundancies.
For the second quarter of the current year, the two businesses will continue to report their respective quarterly results as separate entities and in the third quarter, they will report as a combined entity.
Reuters has reported that the combination of GE Power and Energy Connections would create a consolidated unit with $41.9bn revenue, making it the largest in the group and accounting nearly one third of its industrial revenue.
GE has announced that the incumbent president and CEO of GE Energy Connections, Russell Stokes has been appointed as the president and CEO of GE Power. He will assume the role from July 3 and will lead the integration of the GE Power and Energy Connections businesses.
Stokes will replace Steve Bolze, the former president and CEO of GE Power, who had announced his retirement.
GE chairman and CEO Jeff Immelt said: “Bringing these two businesses together, we saw an opportunity to align our global customer base, create a common strategy, and leverage synergies to simplify our structure.
“Since taking the role at Energy Connections, Russell has led the integration of Alstom Grid and planned disposition of Industrial Solutions. He has a keen sense of the market, and knows how to invest in technology ahead of the curve.”
Image: GE will combine GE Power and GE Energy Connections into one business. Photo: courtesy of a454/FreeDigitalPhotos.net.