:max_bytes(150000):strip_icc()/GettyImages-2234666376-a16a52b125a04a11b184daaecdc357fd.jpg "Corteva Looking to Split Seed, Pesticide Businesses, Report Says")
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Key Takeaways
- Seed and pesticide maker Corteva is reportedly looking to split into two separate companies.
- The Wall Street Journal said the breakup could be announced soon.
- Separating the company could shield it from risks of potential lawsuits related to pesticides.
Shares of Corteva (CTVA) gained in premarket trading Monday on a report that the manufacturer of crop seeds and pesticides is considering splitting itself in two.
The Wall Street Journal reported that an announcement could come soon.
Corteva was created in 2018 as the agricultural arm of then-recently merged DowDuPont, and became a separate company in 2019 as part of a three-way spinoff of DowDuPont into Corteva, DuPont (DD), and Dow (DOW).
The Journal noted that Corteva and rival Bayer dominate the U.S. corn and soybean seed market, and the motivation behind separating the business may be aimed at avoiding pesticide lawsuits such as the one Bayer is facing over its Roundup weedkiller.
Investopedia has reached out to Corteva for comment.
Corteva shares entered the day up about 30% year-to-date.
