Reported 2 days ago
The pace of corporate spinoffs in the US is expected to increase in 2025, with historical data indicating that newly spun-off companies typically outperform the S&P 500 by 10% over the following 18-24 months. Factors such as recent successful spinoffs, pressure from activist investors, and potential regulatory demands from mergers may drive this trend. Notable cases include GE Vernova and Atmus Filtration, both achieving significant returns post-spinoff. As activist investors push for corporate restructurings, companies like Honeywell are exploring potential breakups to enhance value.
Source: YAHOO