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SEATTLE, June 14 (Reuters) - A top General Electric Co executive announced his retirement on Wednesday after failing to win the conglomerate's chief executive job.
Steve Bolze, the head of GE Power, lost out to John Flannery, head of GE's Healthcare division, to succeed Jeff Immelt as CEO, starting Aug. 1. Bolze's retirement is effective July 3.
GE said on Wednesday it will fold its energy connections business into its GE Power unit, and that connections chief Russell Stokes would lead the combined business.
Adding GE's energy connections business, which provides electric power distribution and conversion equipment, to GE Power will create a unit with $41.9 billion in revenue, based on 2016 results, making it the largest of GE's units.
"This is an almost unavoidable outcome when there is only one winner for the brass ring," RBC Capital Markets analyst Deane Dray said in a note to clients. "We do not expect to see much of a stock reaction to this news."
GE stock was flat in morning trading on the New York Stock Exchange.
Bolze said in a letter to employees that he had told Immelt he would retire after 24 years at GE if he was not chosen to lead the company. (Reporting by Alwyn Scott; Editing by Chizu Nomiyama and Bill Rigby)