Factbox-Some of the biggest splits in Corporate America
2022.06.21 18:21
FILE PHOTO: Kellogg’s Corn Flakes owned by Kellogg Company is seen for sale in a store in Queens, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo
(Reuters) – Kellogg (NYSE:K) 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 (NYSE:T) 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 https://reut.rs/3mWDI3Q
of its regional operating
companies, or Baby Bells.
2015 Ebay Inc In June 2015, e-commerce firm
eBay Inc (NASDAQ:EBAY) approved the spinoff https://www.ebayinc.com/stories/news/ebay-inc-board-approves-completion-of-ebay-and-paypal-separation
of PayPal (NASDAQ:PYPL), 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 https://reut.rs/3og9c4i.
Hewlett Packard Enterprise (NYSE:HPE),
which comprises the corporate
hardware and service business,
while Hewlett-Packard, which was
renamed HP Inc (NYSE:HPQ), comprises the
computers and printers business.
Both stocks have risen since
that time, with HPE up 25% and
HPQ 156%.
2016 Honeywell (NASDAQ:HON) In September 2016, Honeywell
International International Inc, a U.S.
manufacturer of aerospace parts
and climate control systems,
approved the spinoff https://reut.rs/3F36dTY
its $1.3 billion resins and
chemicals operations into a
standalone company, AdvanSix (NYSE:ASIX)
Inc. That stock is up 182% since
it began trading, while
Honeywell rose 66% during that
time period.
2019 DuPont (NYSE:DD) In April 2019, DowDuPont Inc
spun off its material science
division Dow Inc, followed in
June 2019 with agriscience
company Corteva (NYSE:CTVA), as part of its
breakup into three companies https://reut.rs/31McHYU.
Since the starts of their
trading, Dow is up 10%, Corteva
is up 79%, but DuPont has shed
more than 27%.
2020 United Technologies (NYSE:RTX) In March 2020, United
Technologies Corp approved the
spinoffs https://www.prnewswire.com/news-releases/united-technologies-board-of-directors-approves-separation-of-carrier-and-otis-and-declares-spin-off-distribution-of-carrier-and-otis-shares-301021893.html
of Carrier Global (NYSE:CARR) Corporation
and Otis Worldwide (NYSE:OTIS) Corporation.
Carrier has climbed 165% and
Otis rose 69.7% since they
commenced trading.
2021 IBM (NYSE: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 (NYSE:GE) 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 (NYSE:JNJ) 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.
