DD Stock Separation Plan: What to Know as DuPont Splits Into 3 Companies


  • DuPont (DD) announced it will break up its business into three distinct segments.
  • DuPont joins a growing list of industrial giants choosing to split up their businesses to boost returns.
  • DD stock is eyeing minor gains on the news after trending close to even on the year thus far.
DD stock - DD Stock Separation Plan: What to Know as DuPont Splits Into 3 Companies

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Investors are keeping a close eye on DuPont (NYSE:DD) stock today as the American multinational chemical company opts to break up its business into three distinct companies. Indeed, DuPont will fracture its electronics and water sectors, leaving the third company more specifically focused on its biopharma and medical devices.

The transaction will be tax-free to shareholders. It will be completed over the next 18 to 24 months and is still subject to approval by Dupont’s board of directors.

DuPont, which announced the split late Wednesday, is seemingly the latest in a growing number of industrial giants choosing to fracture their business in pursuit of higher financial gains. This includes the likes of General Electric (NYSE:GE), which split into GE Vernova (NYSE:GEV) and GE Aerospace, and Johnson & Johnson (NYSE:JNJ), which spun off its consumer-health division into Kenvue (NYSE:KVUE).

This isn’t the first time Dupont has opted to split up, either. In fact, Chief Executive Ed Breen has facilitated numerous major corporate changes over the course of his career, including Dupont’s merger with Dow Chemical about 10 years ago.

“The three-way separation will unlock incremental value for shareholders and customers and also create new opportunities for employees,” Breen said. “Critically, each company will have greater flexibility to pursue their own focused growth strategies, including portfolio enhancing M&A (mergers and acquisitions).”

That said, the break-up will feature some notable leadership changes. Starting June 1, Breen will step into an Executive Chairman role, with the company’s Chief Financial Officer, Lori Koch, taking on Breen’s CEO position.

DD Stock Continues to Waver Following Split Announcement

DD stock has been all over the place on today’s news. Indeed, DD plunged this morning despite climbing in pre-market trading. Since then, it has mostly teetered between red and green, though at the time of writing, the stock is up about 1% heading into the late afternoon.

DD stock has experienced a similar story over the course of this year. Indeed, DD is up 1.9% year-to-date after experiencing plenty of ups and downs since the start of 2024.

Investors are hopeful today’s news proves a catalyst for strong growth from the more than 200 year-old company.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/dd-stock-separation-plan-what-to-know-as-dupont-splits-into-3-companies/.

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