Dutch electronics giant Philips is to break itself up to focus on healthcare products and consumer goods.

One company will focus on health and technology and will have sales of €15bn. The other will include Philips lighting business and have annual sales of €7bn. 

‘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,’ said chief executive Frans van Houten in a statement.

Philips is now starting the process to move its lighting operations into a separate legal structure and will ‘consider various options for alternative ownership structures with direct access to capital markets’.

More information on this will follow in the course of 2015, Van Houten said.

More to follow