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DuPont de Nemours will split into three companies
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DuPont Co. headquarters are at the company’s Chestnut Run Plaza Campus in Wilmington, Delaware, on Wednesday, December 9, 2015.
CNN –
DuPont de Nemours, the American multinational chemical company whose history dates back to 1802, announced plans to split into three publicly traded companies on Wednesday.
The company plans to spin off its electronics and water businesses into its own, yet-to-be-named companies in a tax-free transaction for shareholders. DuPont said it expects to complete the dissolution transactions over the next 18 to 24 months, and is subject to final approval by DuPont’s board of directors.
The announcement also included a change in leadership: Effective June 1, DuPont Chief Financial Officer Lori Koch will assume the role of CEO. DuPont’s current CEO, Ed Breen, will remain executive chairman. Koch will remain CEO of the new, downsized DuPont once the spinoffs are completed, according to the company.
DuPont split comes amid other large multinational companies announcing breakups in recent yearswith many CEOs and corporate boards praising the agility of smaller companies.
In a statement, Breen repeated a similar refrain, saying the three smaller companies would have greater flexibility after the split.
“The three-way separation will unlock incremental value for shareholders and customers and also create new opportunities for employees,” he said. “Critically, each company will have greater flexibility to pursue its own focused growth strategies, including mergers and acquisitions (mergers and acquisitions) to enhance the portfolio.”
Patrick Hertzog/AFP/Getty Images
A General Electric employee walks past a logo as French Economy and Finance Minister Bruno Le Maire attends a meeting with managers and unions at GE headquarters in Belfort, eastern France, June 3, 2019. – General Electric announced on May 28, 2019, its desire to eliminate more than 1,000 positions in France, including 792 at the Belfort entity that produces gas turbines and 252 at other entities dedicated to “support functions”.
The dismantling of GE, once America’s iconic ‘everything company,’ is now complete
In recent years, large American companies such as J&J, Kellogg It is General electrical announced spin-offs and spin-offs of companies, signaling a preference for smaller, more agile companies to the detriment of the conglomerates that gained prominence in previous decades.
This is DuPont’s second separation in half a decade. In 2019, DowDuPont, which was created in a DuPont merger with Dow Chemicalseparated into three separate entities: DuPont, Dow Chemical and Corteva, the company’s agricultural business.
On Wednesday, DuPont said the newly formed electronics company would focus on “semiconductor solutions and advanced electronics,” while the new water company would be “a comprehensive water solutions provider.” The remaining divisions will remain part of DuPont.