Corteva’s board of directors unanimously approved a plan to separate the company into two independent entities, one comprising its current crop protection business (‘New Corteva’) and the other its current seed business (SpinCo’).
According to the press release, this separation gives shareholders two compelling investment opportunities.
Upon separation, current Corteva Chairperson Greg Page will become chairperson of New Corteva, and current Corteva CEO Chuck Magro will become CEO of SpinCo. The full board and management teams of both companies will be announced in due course.
“Over the past six years, we have taken deliberate steps to build a strong, successful technology company by simplifying our portfolio, reducing costs, investing in high-return endeavours, and ensuring our pipeline would maximise impact to farmers and returns to the company.
“As we look to the future, we want to best position both businesses to win in their respective markets and accelerate value for shareholders,” Magro said.
The separation is expected to take place through a spin-off of SpinCo, which is intended to qualify as a tax-free transaction for US federal tax purposes for Corteva shareholders.
The release stated that the transaction was expected to be completed by the second half of 2026, subject to certain conditions, including obtaining final approval by the Corteva board of directors, and receipt of a favourable opinion of legal counsel with respect to the tax-free nature of the transaction for US federal income tax purposes.
It added that Corteva may, at any time and for any reason until the proposed transaction was complete, abandon the separation or modify its terms.
According to Magro, due to the evolution of the international seed and crop protection markets, Corteva saw opportunities ahead for both companies.
“This is the right time to act to stay ahead of the market. We see this separation as the logical next step in [the companies’] growth trajectory. The separation will allow both businesses to maximise long-term value creation by focusing on their own priorities,” he explained.
He also stated that each business was expected to benefit from the separation through stronger strategic and operational focus, a tailored capital allocation strategy with the flexibility to invest in distinct organic and inorganic growth opportunities, and the improved ability to adapt quickly to leverage evolving market dynamics.
New Corteva would also focus on next-generation, sustainable, and differentiated products, including biologicals, the industry’s fastest-growing market segment.
“New Corteva’s partners will benefit from its focused, more optimised route to market. In addition, the company will be able to drive more effective channel management.
“New Corteva will also benefit from enhanced strategic flexibility, collaboration, and partnership across the industry to drive efficiency and value,” the statement read.
SpinCo would focus on advanced genetics aimed at improving yield: “As home to the Pioneer brand, [SpinCo] will launch from a position of strength.
It will also leverage other opportunities, including the strength of its regional anchor brands, including Dairyland Seed; its partnership with retailers through brands like Brevant; and growing presence in the out-licensing market.”
For more information visit corteva.com.
