Key Takeaways:
- Corteva announces plan to spin off seed and crop protection operations into two independent companies by the second half of 2026.
- “New Corteva” will focus on crop protection, biologicals, and operational excellence.
- “SpinCo” will build on Pioneer’s century-long genetics leadership to drive innovation in seeds.
- Transaction is structured to be tax-free for Corteva shareholders.
- 2025 financial guidance reaffirmed; investor call set for October 1.
Corteva Approves Separation Plan
Corteva (NYSE: CTVA) announced that its Board of Directors has unanimously approved a plan to separate the company into two publicly traded companies: one comprising its Crop Protection business, referred to as New Corteva, and the other its Seed business, referred to as SpinCo.
The transaction, expected to be completed in the second half of 2026, is designed to unlock value for shareholders while positioning each business to focus on distinct strategic priorities. Corteva Chair Greg Page will lead the board of New Corteva, while current CEO Chuck Magro will assume the role of CEO of SpinCo.
“Over the past six years, we have taken deliberate steps to build a strong, successful technology company,” said Magro. “As we look to the future, we want to best position both businesses to win in their respective markets and accelerate value for shareholders.”
New Corteva: Crop Protection and Biologicals
New Corteva will emerge as a global leader in crop protection with an emphasis on operational excellence and differentiated innovation. The company will maintain a strong focus on sustainable solutions, including the rapidly growing biologicals segment, and pursue disciplined capital allocation to expand market share.
With 2025 net sales projected at $7.8 billion, 44% of Corteva’s total, New Corteva plans to optimize its supply chain, drive shareholder returns, and strengthen partnerships across the agricultural industry.
SpinCo: Advanced Genetics and Seed Innovation
SpinCo will build on Pioneer’s century-long track record in advanced genetics, delivering innovative seed solutions to help farmers improve yield, enhance sustainability, and manage crop health. In addition to Pioneer, SpinCo will leverage regional brands such as Dairyland Seed® and Brevant®, while pursuing growth through hybrid wheat, biofuels, gene editing, and out-licensing opportunities.
SpinCo is expected to report $9.9 billion in 2025 net sales, or 56% of Corteva’s total. With sustained investment in research and development, the new entity aims to maintain its leadership position and expand its reach in global seed markets.
Transaction Details and Timeline
The planned separation will be executed as a tax-free spinoff for Corteva shareholders, pending regulatory approvals, legal confirmations, and SEC filings. The company reaffirmed its 2025 full-year guidance and maintained its 2027 value framework.
Corteva’s leadership confirmed that the separation remains subject to market conditions and board approval, with flexibility to amend or abandon the plan prior to completion.
An investor call is scheduled for October 1 at 8:30 AM EDT to discuss the separation in further detail.
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