Corteva weighs potential separation of seed and pesticide businesses

Corteva, one of the world’s largest agricultural suppliers with a market value of about $50 billion, is considering a breakup that would divide its seed and pesticide operations into two companies, according to people familiar with the matter.

The move, which could be announced soon if talks are finalized, would mark a significant restructuring for the company that emerged from the DowDuPont merger and subsequent spinoff in 2019. Since then, Corteva’s share price has risen nearly 150%, including more than 25% this year. Its stock climbed 2% on Friday following reports of the potential split.

Corteva is a leading supplier of genetically engineered corn and soybean seeds under its Pioneer brand, alongside crop protection chemicals. Together with Bayer, it accounts for roughly 70% of U.S. corn and soybean seed sales, federal data show. The company’s seed unit generated $9.6 billion in revenue last year, compared with $7.4 billion from crop protection products.

Industry analysts note that separating the businesses could insulate the seed unit from potential future liabilities linked to pesticides. Bayer, Corteva’s closest rival, has faced billions of dollars in legal claims over allegations that its Roundup weedkiller causes cancer—charges the company denies. Corteva is not involved in that litigation.

Chief Executive Chuck Magro, who joined in 2021 after leading Canadian fertilizer producer Nutrien, has overseen restructuring moves including narrowing the company’s product portfolio and relocating headquarters to Indianapolis in 2022. The company reported about $17 billion in total sales last year and has recently raised its profit outlook.

A breakup would echo a previous wave of agribusiness consolidation triggered by low grain prices in the mid-2010s, when Bayer acquired Monsanto and ChemChina purchased Syngenta. BASF has said it plans to list its agricultural unit in 2027.

For now, farmers continue to invest in high-performance seeds and pesticides despite weaker crop prices, underscoring the importance of Corteva’s products to agricultural productivity worldwide.