Dutch
electronics giant Philips has said it is planning to split the company in two,
separating its lighting business from its healthcare division.
Both
companies will continue to be based in the Netherlands and use the Philips
name, it said in a statement.
Philips
has been streamlining its business by selling off underperforming parts of the
business in recent years.
Chief
executive Frans van Houten said the move was meant to prepare the company for
"the next century".
"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," he said.
"Both
companies will be able to make the appropriate investments to boost growth and
drive profitability, ultimately generating significantly more value for our
customers, employees and shareholders".
Philips,
which began as a lighting company back in 1891, said the separation would make
it easier for the lighting business to enter new markets.
It also
said it would
