Corteva says it will separate its seed and pesticide businesses into separate listed companies, as the agrichemicals firm seeks to sharpen its strategic focus.
The separation will allow each company to set specific capital allocation strategies, respond faster to market shifts and pursue growth opportunities independently.
Its shares fell about seven per cent to their lowest in nearly five months.
The stock has fallen more than 14 per cent since the Wall Street Journal reported the company’s spin-off plans last month, as analysts raised concerns about disruption and dilution.
The company has estimated added costs from splitting the company, of $80 million-$100 million US.
Corteva’s seed business accounted for 57 per cent of its total sales in 2024, with remaining coming from its other segment, which produces herbicides, fungicides, insecticides and seed treatments.
Click here to see more...