(Reuters) – Industrial materials maker DuPont said on Wednesday it no longer plans to spin off its water business into a publicly traded company, but will pursue spinning off its electronics business .
The move comes months after the company revealed plans to split into three publicly traded companies, tax-free, to unlock value and pursue targeted growth.
The company said it would accelerate the separation of its electronics businesses and hoped to complete the transaction by November 1. Last year in May, DuPont said it could take up to 24 months to complete the transaction.
DuPont’s electronics segment includes semiconductor technologies and interconnect solutions. The segment recorded a 7.1% increase in revenue in the third quarter.
“The decision to keep the water (unit) at DuPont provides the new organization with greater strategic flexibility over time and another high-growth business alongside healthcare,” CEO Lori Koch said, adding that 2025 is expected to be a strong year for the water segment. .
In 2015, DuPont merged with Dow in a $130 billion deal to create DowDuPont. Two years later, the company split its chemical operations as Dow and its food division into Corteva, with DuPont remaining the company it is today.
Globally, several companies, including Maple Leaf Foods, have decided to spin off their operations into publicly traded companies in an effort to increase profitability and revenue.
DuPont shares, which fell after Wednesday’s announcement, reversed losses and were last up 1% at $77.00 in extended trading.
The company reaffirmed its adjusted annual earnings forecast of $3.90 per share and expects net revenue of approximately $12.37 billion. It will publish its financial results on February 11.
(Reporting by Vallari Srivastava in Bangalore; Editing by Alan Barona)
