A 220-year-old American financial titan is disintegrating.
DuPont is set to split its electronics and water businesses into their own separate companies in a deal that won't affect shareholders' taxes. The operation, which is expected to be finished within the next year or two, requires the go-ahead from the company's board of directors.
As part of the restructuring, Lori Koch, the current CFO, will assume the CEO role starting June 1st. Ed Breen, the current CEO, will remain in the business as executive chairman. Once the breakup is complete, Koch will continue to lead the new and slimmer DuPont.
DuPont's restructuring aligns with recent later moves by other big companies, as many corporate leaders and boards emphasize the benefits of a smaller and more agile setup.
Breen remarked in a statement that the split will yield more advantages for shareholders and customers, paving the way for a range of fresh chances for employees.
"The three-way separation will enable us to unlock greater value for shareholders and customers and create new opportunities for workers," Breen said. "Significantly, each organization will be able to pursue its own distinct growth strategies, including potential M&A (mergers and acquisitions)."
A series of prominent U.S. companies, including J&J, Kellogg's, and GE, have undergone similar break-ups and spins-offs in the past few years, highlighting a trend towards smaller, more adaptable companies instead of the conglomerates popular since the 20th century.
This is actually the second breakup DuPont has undergone in the course of the past five years. In 2019, DowDuPont, the firm that emerged from DuPont's merger with Dow Chemical, fragmented into three sections: DuPont, Dow Chemical, and Corteva, the firm's agriculture sector.
On Wednesday, DuPont revealed that the new electronics company would concentrate on "semiconductor solutions and advanced electronic items," while the water company would focus on being "a full-service water solutions supplier."
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Source: edition.cnn.com
