General Electric (GE) announced Tuesday that it will split into three companies to focus on aviation, health care and energy.

The American multinational conglomerate said GE Healthcare will be realized in early 2023, in which GE will retain a 19.9% stake.

GE Renewable Energy, GE Power and GE Digital will be combined into a single business in early 2024.

After the transactions, GE said it will be an aviation-focused company.

While the three companies will be run independently, they will be better positioned to deliver long-term growth, the statement said.

They will have deeper operational focus, accountability, distinct strategies based on industry-specific dynamics, strategic and financial flexibility with their dedicated boards of directors and investor bases, it added.

"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," GE Chairman and CEO H. Lawrence Culp, Jr. said in the statement.

Founded by Thomas Edison in 1892 , GE was one of the largest publicly-traded companies in the world. But its stocks have underperformed on US exchanges in recent years. GE was ousted from the Dow Jones in 2018 after becoming the worst performer on the blue-chip index the year previous year.

Its stock price fell from $252 at the beginning of 2017 to below $44 on May 2020, losing more than 80% in almost three and a half years.

GE stocks were up 3.8% to $112.39 per share with a $123.6 billion market value at 12.20 p.m. EDT after the announcement./aa