But there is no rest for the weary. Citigroup analyst P.J. Juvekar believes there is more to come.
“We expect DuPont to look very different than it does today in 2 to 3 years,” writes Juvekar in a Tuesday research note, adding that the company is “actively weighing various options.”
“In the past, the company has talked about value-creation through various methods, including tax-free spins, [reverse Morris trusts] and sales of some of its segments,” writes Juvekar in a Tuesday research report. (A reverse Morris trust, or RMT, is, essentially, a tax-efficient way to sell assets to another buyer.)
DuPont and Corteva continue to have exposure to Chemours liabilities, with Corteva having a smaller piece. Further transactions may further wall off the liability from promising business lines. Given the company’s track record, it is likely that Juvekar is right and there are more spins to come. This was certainly the case with previous serial spinners such as Tyco, and with Ed Breen as Executive Chairman, it seems likely. We look forward to following the future machinations here. After all, who doesn’t like a good reverse Morris Trust transaction?
Disclosure: The author holds shares in DOW and CTVA