(MENAFN) Philips announced it will be splitting into two separate independent companies, one for lighting solutions and one combining healthcare and consumer lifestyles, Xinhua reported
The Dutch electronics giant said that both companies will remain being the market leaders and continue to carry the name Philips, with the healthcare company registering USD19.3 in profit in 2013, while the lighting company posted 7 billion euros.
Philips did not offer a timetable for the split but it said that the healthcare company will be a merger between the health and consumer division, with the goal being to capitalize on healthy living and prevention to diagnosis, treatment, recovery and home care services.
Meanwhile, the lighting division is going to focus primarily on projects in relation with innovative lighting solutions as well as relieving entire neighborhoods and buildings.
"I do appreciate the magnitude of the decision we are taking, but the time is right to take the next strategic step for Philips, as we continue on our transformation. Both companies will be able to make the appropriate investments to boost growth," CEO of Philips said.
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