Smiths Group's Divestments Make Sense as Units Would Attract Higher Valuations -- Market Talk
Dow Jones2025-01-31
1019 GMT - Smiths Group announcing it will spin off two businesses isn't surprising as its units would attract higher valuations as individual entities, AJ Bell analyst Russ Mould says in a note. Although the engineering group has demerged businesses in the past, it has historically resisted calls for a full dismantling of its conglomerate structure, Mould says. "Next steps will be closely watched, with Engine also floating the possibility of a U.S. listing for its John Crane energy services arm which Engine describes as its jewel in the crown," he says. Shares are up 11% at 2,066 pence and are up 20% in the year-to-date. (anthony.orunagoriainoff@dowjones.com)
(END) Dow Jones Newswires
January 31, 2025 05:20 ET (10:20 GMT)
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