A look at some of the biggest splits in Corporate America
Kellogg Co on Tuesday became the latest U.S. corporation to announce a splitting of its business. The company said it would spin off its North American cereal and plant-based foods divisions to focus on expanding its snack business.
Following is the list of some of the major U.S. corporate split-ups in the past:
YEAR COMPANY Stock trading performance since splits, as of June 17 market close
1984 AT&T Inc In 1974, the U.S. government filed an antitrust lawsuit against AT&T Corp because it had a monopoly on telephone lines.
After eight years of litigation, the two sides reached a settlement that led to AT&T giving up control of its regional operating companies, or Baby Bells.
2015 Ebay Inc In June 2015, e-commerce firm eBay Inc approved the spinoff of PayPal, which is up 92% since it began trading. EBay has gained 62% during that time frame.
2015 Hewlett Packard Co In November 2015, Hewlett-Packard split into two listed companies. Hewlett Packard Enterprise, which comprises the corporate hardware and service business, while Hewlett-Packard, which was renamed HP Inc, comprises the computers and printers business. Both stocks have risen since that time, with HPE up 25% and HPQ 156%.
2016 Honeywell In September 2016, Honeywell International International Inc, a U.S. manufacturer of aerospace parts and climate control systems, approved the spinoff its $1.3 billion resins and chemicals operations into a standalone company, AdvanSix Inc. That stock is up 182% since it began trading, while Honeywell rose 66% during that time period.
2019 DuPont In April 2019, DowDuPont Inc spun off its material science division Dow Inc, followed in June 2019 with agriscience company Corteva, as part of its breakup into three companies. Since the starts of their trading, Dow is up 10%, Corteva is up 79%, but DuPont has shed more than 27%.
2020 United Technologies In March 2020, United Technologies Corp approved the spinoffs of Carrier Global Corporation and Otis Worldwide Corporation. Carrier has climbed 165% and Otis rose 69.7% since they commenced trading.
2021 IBM IBM spun off a large chunk of its company, the managed and infrastructure business, as Kyndryl in November 2021, as the century-old tech company shed its slow-growing business to focus on high-margin cloud and artificial intelligence businesses. Kyndryl was down 81% since it began trading in October, while IBM has gained 10.5% since then.
2021 General Electric Co General Electric said it would split into three public companies focusing on energy, healthcare and aviation as the industrial conglomerate seeks to simplify its business, pare debt and enhance its battered share price.
2021 Johnson & Johnson Johnson & Johnson said it was planning to break up into two companies, splitting off its consumer health division that sells Band-Aids and Baby Powder from its large pharmaceuticals unit.
2022 Kellogg Co Kellogg said it would spin off its North American cereal and plant-based foods businesses to focus on its snacking unit, resulting in three independent public companies.
(Reporting by Chavi Mehta, Tiyashi Datta and Deborah Sophia in Bengaluru and Karen Pierog in Chicago and Lewis Krauskopf in New York; Editing by Matthew Lewis, Anil D’Silva and Sriraj Kalluvila)
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