According to people working at DUPONT, after $26.2 billion deal to offload its nutrition business, the company is looking to diversify its electronics unit.
The company is strategizing with the advising team to review its strategic options for the business, which includes a sale or spinoff, reported the people, who asked not to be identified because the information is confidential. It’s also considering a Reverse Morris Trust, or a merger with another company designed to be tax-free.
No final decision has been made and the company to re-elect to keep the unit intact, they said.
DuPont electronics and imaging specialize in materials for semiconductors, light-up displays and sensors. The business recorded sales of $2.6 billion in the first three quarters of 2019, contributing about 16% of the company’s total revenue, according to filings. DuPont is set to report fourth-quarter and full-year results on Jan. 30.
Diversification of the unit would complete a full breakup of the company. DuPont, which had four primary business lines following the split of DowDuPont Inc., agreed last month to sell its nutrition division to International Flavors & Fragrances Inc. is a deal designed as a Reverse Morris Trust.
Bloomberg News reported in November that the company is looking to expand its transportation industrial unit.
The futuristic sales would add to the deal-making popularity of DuPont Chairman Ed Breen, who architecture the 2012 breakup of Tyco International and supervised the 2000 sale of General Instrument. More recently, Breen led the 2017 collaboration of DuPont and Dow Chemical Co., which is the largest chemicals industry merger ever, and flowed by a breakup that formed a standalone DuPont, Dow Inc. and Corteva Inc.
The shares rose by 2.2% in New York trading. They were up from 1.3% to $61.92 at 12:37 p.m., giving the company a market cap of around $45.9 billion. The shares fell by about 21% in the previous year.
Struggling with sluggish markets lately, the company reported in May that it will be selling its six non-core businesses, representing $2 billion in collections, that seemed too volatile.
Nishtha Sarabhai after working for three years in a Bank switched to writing to balance her work and home. She is a mother of two beautiful kids. She enjoys writing on Aerospace, Science and new invcentions. She has been with VMR news since its inception.