Corteva gains after decision to split seeds and pesticide units into separate entities

Corteva

01/10/2025 13:03

** Shares of agrichemicals firm Corteva CTVA.N up 2.1% at $69.05 premarket

** 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

** CTVA boss Chuck Magro will become CEO of the spun-off company that will house the seed business

** Corteva chairman Greg Page will remain in his position at the existing company that will run the crop protection segment

** 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

** As of last close, CTVA up 18.7% YTD

 (Reporting by Sumit Saha in Bengaluru)

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