The separations will not require a shareowner vote.

Honeywell International Inc. (HON - Get Report) announced Tuesday, Oct. 10, that it plans to create two new, stand-alone publicly traded companies as a result of comprehensive portfolio review.

One publicly traded company will consist of Honeywell's Homes product portfolio and ADI global distribution businesses, worth about $4.5 billion. The other will be Honeywell's Transportation Systems, worth about $3 billion.

The planned separation is expected to be completed by the end of 2018. They're intended to be tax-free spinoffs to Honeywell shareowners for federal income tax purposes. The separations will not require a shareowner vote.

"The remaining Honeywell portfolio will consist of high-growth businesses in six attractive industrial end markets, each aligned to global mega trends including energy efficiency, infrastructure investment, urbanization and safety," Honeywell CEO Darius Adamczyk said in a statement.

Honeywell stock traded flat in premarket trading on Tuesday. Shares have gained 23.95% since the start of the year.

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