General Electric merges power units

SEATTLE: General Electric (GE) is to combine its power and energy distribution businesses to create its largest unit by revenue as the top executive at GE Power announced his retirement after failing to win the conglomerate’s CEO job.

The changes come just two days after Steve Bolze, a 24-year GE veteran who heads the power unit, lost out to John Flannery, chief of GE’s Healthcare division, as successor to CEO Jeff Immelt, which GE announced on Monday.

Flannery, who takes over Aug. 1, is conducting a review of GE’s businesses, which include jet engines, power plants and medical scanners.

The review could lead to further slimming of GE’s portfolio, after it sold its finance, appliances and NBCUniversal units in recent years.

Flannery said GE is sticking with its strategy of using software to increase the value of industrial equipment.

Bolze, 54, will step aside on July 3 for GE Energy Connections chief Russell Stokes, a 20-year GE veteran who will lead the combined business under the name GE Power. Stokes is 45.