Corteva falls after decision to split seeds and pesticide units

Corteva

01/10/2025 15:21

Updates

** Shares of agrichemicals firm Corteva CTVA.N down 6.6% at $63.17

** Co says it will separate its seed and pesticide businesses into separate publicly traded companies

** Following the spinoff, the two entities will operate as a pure-play seeds company and a pure-play crop protection firm

** Company is estimating dis-synergies, or added costs, of $80 million-$100 million, CFO David Johnson says during a conference call

** Adds crop-protection unit would be responsible to settle the environmental claims including pollution linked to PFAS, or "forever chemicals"

** CTVA expects the spin off to be complete in the second half of 2026

** Brokerage Mizuho says the pesticide business has benefited from the halo effect of the higher-value seed business

** "In our view, a reasonable Sum-of-the-Parts valuation analysis doesn't offer such compelling upside to what can be achieved by doing nothing" - Mizuho

** Including session's moves, CTVA up 10.5% YTD

 (Reporting by Sumit Saha in Bengaluru)

 ((Sumit.Saha@thomsonreuters.com;))