(Reuters) – Industrial materials maker DuPont (NYSE:) said on Wednesday that it no longer intends to spin off its water business into a publicly traded company, but said it would go ahead with spinning off its electronics business.
The decision comes months after the company revealed plans to divide into three public joint stock companies in an attempt to unlock value and pursue focused growth.
The company said it will accelerate the process of separating its electronics business and expects to complete the deal by November 1. In May last year, DuPont said the deal could take up to 24 months to close.
DuPont's Electronics segment includes semiconductor technologies and interconnection solutions. This sector witnessed a 7.1% increase in net sales during the third quarter.
“The decision to remain the water (unit) with DuPont provides the new organization with greater strategic flexibility over time and other high-growth businesses besides healthcare,” CEO Lori Koch said, adding that 2025 is expected to be a strong year for the water sector. .
In 2015, DuPont merged with Dow in a $130 billion deal to create DowDuPont. Two years later, the company separated its chemical business into a Dow and agribusiness division Corteva (NYSE:), with DuPont remaining the company it is today.
Globally, several companies, including Maple Leaf Foods, have moved to split their businesses into publicly traded companies in an effort to increase profitability and revenues.
DuPont shares, which fell more than 1% after Wednesday's announcement, trimmed losses and were last down marginally in extended trading.
