U.S. agrichemicals company Corteva is exploring a breakup that would separate its seed and pesticide businesses into two separate companies, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Separating its crop-seed unit from its pesticide business could help shield its seeds from any potential future liabilities associated with its pest and weed-killing chemicals, the report said, adding that the company is expected to reveal plans soon, barring any last-minute snags.
Corteva, spun off from chemical conglomerate DowDuPont in 2019, did not immediately respond to a Reuters request for comment. Shares of the company rose 1.6 per cent in extended trading and it had a market capitalization of nearly $50 billion (C$69.2 billion) as of Friday.
Read Also
Quebec pork company calls for transparency around gene-edited pigs
Quebec-based pork company duBreton is calling for transparency around meats from gene-edited pigs on concerns that a lack of mandatory labelling will confuse consumers, and dilute certification claims. The organic sector is also calling for labelling rules.
Its possible split underscores a growing wave of corporate separations in 2025, as major companies such as Honeywell, Kraft Heinz and Warner Bros. Discovery respond to investor calls for restructuring.
Last year, DuPont had also planned to split into three publicly traded units to pursue focused growth, but has now decided against selling its water and protection unit.
The agrichemicals industry has been grappling with a potential fallout from shifting tariff policies, which are expected to lower demand and curb farmers’ spending.
Corteva is among the largest crop-protection product makers in the United States, competing with the likes of Syngenta and German firms BASF and Bayer.
In August, Corteva raised its annual adjusted profit and sales forecast following strong performance in the first half of the year.
DowDuPont was formed in 2017 after the merger of DuPont and Dow Chemical. Two years later, it spun off its chemical business as Dow and the agribusiness division into Corteva, with DuPont remaining on as the company it is today.
-Reporting by Pooja Menon in Bengaluru
