Honeywell to streamline operations and create two publicly listed companies
Honeywell International Inc., a US multinational manufacturing conglomerate, is reportedly considering spinning off its non-core assets in the attempt to streamline its business operations according to Reuters.
This will see the creation of two new publicly listed companies, with Honeywell looking to do this with its turbochargers business, the branch that manufactures components that improve the efficiency and performance of vehicles.
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The company did not disclose which other units it was considering for spinoff, but its other businesses include its energy efficient products and solutions, electronic materials, speciality chemicals, aerospace and security technologies sectors.
It has been revealed that the company’s shareholder Third Point LLC has called for the spinoff of its aerospace division, claiming that it could create a further $20bn in shareholder value due to the company being undervalued compared to its rivals.
However, Honeywell is unlikely to comply with this, with its aerospace division being its largest business, making engines and auxiliary aircraft for airspace giants including Bombardier and Textron.
The move would be the first major undertaking by new CEO Darius Adamczyk, having succeeded David Cote back in April.
