GE, an icon of American industry, has struggled to rebound from the financial crisis of 2008-2009.
"Today's actions unlock both a pure-play healthcare company and a tier-one oil and gas servicing and equipment player".
The company said the moves will lower its debt by $25 billion and reduce risk.
Indeed, GE's move could prove beneficial by freeing the healthcare division from the constraints of a corporate parent and giving it more independence - a rationale cited by Siemens for its spinoff of Siemens Healthineers into a separate company.
The proposed sale was though not entirely unexpected after Flannery disclosed earlier this year GE was considering "exit options" for Baker Hughes as part of a planned $20 billion divestment effort in a reversal of its formerly expansionist stance.
"As an independent global healthcare business, we will have greater flexibility to pursue future growth opportunities, react quickly to changes in the industry and invest in innovation", he said in a statement. The CEO already reduced the payout in November, a painful blow to the many investors who have come to rely on the steady income.
Flannery has said he wants to see margins improve at GE-RE. CEO, joined the board earlier this year. Investors have been bracing for a possible cut as GE's condition has deteriorated.
Despite Flannery having insisted that "everything [was] on the table" when evaluating a potential breakup of GE, there have been few signs the company was seriously considering letting go of its renewables business, which offers one of the broadest portfolios of clean-energy technologies in the market.
Since then, Flannery has agreed to unload GE's century-old locomotive operations.
Early this year, after GE detailed worse-than-expected problems with insurance liabilities, Flannery promised to explore bigger changes, including a possible breakup.
GE will sell approximately 20 percent of the health care business straight away and distribute the rest to its shareholders over the next 12 to 18 months as sheds those assets.
In April, medical equipment maker Danaher Corp approached GE about potentially acquiring the life sciences division of its healthcare unit, a major source of sales that makes X-ray machines and hospital equipment, according to a person familiar with the matter.
"We are a leading player in onshore wind, gaining market share in 2017", he says.
The U.S. and European manufacturing titans have historically tracked each other's business closely, with close competition in power turbines, household appliances, medical devices and light bulbs. GE's aviation business has soared on strong demand for jet engines, but its power unit has suffered declining profit, and GE now plans to pump another $3 billion into its GE Capital finance business next year.
As of late, the organization has been busy selling various assets.
GE pledged to preserve its 48-cent-a-year dividend until the healthcare unit is spun off, partially appeasing investors who have expressed concerns about GE's ability to pay it. "One business had no idea what another business did", he bemoaned.