Japan’s Toshiba has approved a plan to split the conglomerate into three companies, after years of tension with shareholders who aim to maximize the firm's value by dividing its businesses.

The move, expected to take two years, stipulates spinning two companies off from the rest of Toshiba's operations. One company will focus on Toshiba’s energy and infrastructure while its hard disk drives and power semiconductor businesses will form the backbone of another. A third company will manage its stake in flash-memory chip company Kioxia Holdings and other assets.

"The separation allows each business to significantly increase its focus and facilitate more agile decision-making and leaner cost structures," the company said in a statement.

"As such, both companies will be much better positioned to capitalize on their distinct market positions, priorities, and growth drivers to deliver sustainable profitable growth and enhanced shareholder value."

Toshiba's breakup comes the same week US industrial powerhouse General Electric called time on its empire and Johnson & Johnson announced it was splitting up too.