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Following GE' s lead, Johnson & Johnson and Toshiba announce plans to split into multiple companies


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WWW.CNBC.COM

Shares rose by about 3% in premarket trading after the announcement.

 

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Health-care conglomerate Johnson & Johnson announced plans Friday to split its consumer products business from its pharmaceutical and medical device operations, creating two publicly traded companies. The news sent shares higher in premarket trading.

 

The separation will sheer off its household products unit, maker of Band-Aid bandages, Aveeno and Neutrogena skin care products, and Listerine, from its riskier, but faster-growing division that makes and sells prescription drugs and medical devices, including its Covid-19 vaccine.

 

“Following a comprehensive review, the board and management team believe that the planned separation of the consumer health business is the best way to accelerate our efforts to serve patients, consumers, and healthcare professionals, create opportunities for our talented global team, drive profitable growth, and – most importantly – improve healthcare outcomes for people around the world,” outgoing CEO Alex Gorsky said in a statement.

 

 

 

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WWW.BBC.COM

The conglomerate has come under increasing pressure from activist investors to reform.

 

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Japanese conglomerate Toshiba has confirmed plans to split the company into three separate businesses.

 

Toshiba said the three companies would be focused on infrastructure, semiconductors and devices.

 

The company has come under increasing pressure from activist investors to make changes since an accounting scandal in 2015.

 

 

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I'm only a half semester into my MBA but I'm guessing this would be...mostly good? Each has been around long enough to get bloated from a bureaucratic standpoint, so more flexibility and the opportunity to do some tricky shit with their debt probably makes it a win-win.

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