Multinational conglomerate company, conglomerate Toshiba is on the verge of break up into three separate businesses.

The plan by the Japanese company is aimed at creating three companies that will be focused on infrastructure, semiconductors and devices, to increase the stock market valuations of Toshiba’s different businesses after facing pressure from shareholders.

This development was prompted by an accounting scandal in 2015, which made the company come under increasing pressure from activist investors to make changes.

Meanwhile, for Toshiba concluded on its plan, another multinational conglomerate, General Electric had earlier announced a similar strategy that will see the historic company broken up this week.

Toshiba’s energy and infrastructure unit as well as its device and storage operation, are the two major businesses it will spin off.

Another plan by the company is to own a 40.6% stake in memory chipmaker Kioxia as well as other assets after shedding those two companies.

By the second half of 2023, it is expected to complete the reorganisation.

In reaction to the development, Atul Goyal of investment bank Jeffries said:

“The move is in the right direction, but it seems slow,” said Atul Goyal of investment bank Jeffries, who would have preferred a timeline of three-to-six months.

“2023 is a long way out and we are not sure what else will change between now and then.”