WASHINGTON (dpa-AFX) - Agriculture technology company Corteva, Inc. (CTVA) announced on Wednesday that its board has approved a plan to separate the company into two independent, publicly traded entities - one focused on its Crop Protection business (New Corteva) and the other on its Seed business (SpinCo).
Upon separation, current Corteva Chair Greg Page will become Chair of New Corteva, while current CEO Chuck Magro will lead SpinCo as its CEO.
New Corteva will have a capital structure and investment-grade credit rating designed to support its future needs and deliver consistent growth. Its funds will be used to invest in unique solutions, develop advanced sustainable products for farmers, and make strategic acquisitions to strengthen its market position. New Corteva's net sales for 2025 are estimated at $7.8 billion, representing 44% of Corteva's total net sales.
SpinCo, as a standalone company, will also target an investment-grade credit rating. Its focus will be on growth through acquisitions, continued research and development, and opportunities in licensing, hybrid wheat, biofuels, and gene editing. SpinCo's net sales for 2025 are estimated at $9.9 billion, accounting for 56% of Corteva's total net sales.
The separation is expected to be completed in the second half of 2026.
'The seed and crop protection markets have evolved, and the opportunities ahead for both companies are diverging. This is the right time to act to stay ahead of the market. The separation will allow both businesses to maximize long-term value by focusing on their own priorities. We see this as the logical next step in their growth trajectory,' said Corteva CEO Chuck Magro.
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