How Chinese Competition Helps Western Conglomerates
Firms like GE and Siemens may well find that their decision to split their businesses into multiple companies leads to increased profits and higher stock prices. But recent research indicates that this is not the only way conglomerates can boost efficiency.
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MUNICH – In November, the US industrial powerhouse General Electric (GE) announced that it would split into three companies. The Japanese conglomerate Toshiba and health-care giant Johnson & Johnson have since announced similar plans. And these are just the latest in a string of such breakups, which include the likes of DowDuPont and Siemens. Is the age of the conglomerate coming to an end?