The tax-free spin-off is expected to be completed in the second half of 2026.
Global agriculture technology leader Corteva announced on October 1, that its Board of Directors has unanimously approved a plan to separate the company into two independent, publicly traded entities. The restructuring will create New Corteva, comprising the current Crop Protection business, and SpinCo, which will house the Seed business, including the venerable Pioneer® brand.
Corteva CEO Chuck Magro emphasized the strategic timing of the decision, noting that the seed and crop protection markets have evolved to the point where the opportunities for the two businesses are now "diverging." The separation is intended to provide both companies with a stronger strategic and operational focus, along with a tailored capital allocation strategy to pursue distinct organic and inorganic growth opportunities.
"This separation will allow both businesses to maximize long-term value creation by focusing on their own priorities," Magro stated. "As such, we see this separation as the logical next step in their growth trajectory."
The separation is expected to be effected through a spin-off of SpinCo that is intended to qualify as a tax-free transaction for U.S. federal tax purposes to Corteva shareholders.
New Corteva, the Crop Protection business, is projected to account for $7.8 billion in net sales for 2025, or 44% of Corteva's total. This entity will focus on operational excellence, an optimized supply chain, and differentiated, innovative solutions, including the industry's fastest-growing segment: biologicals. Current Corteva Chair Greg Page will become the Chair of New Corteva upon separation. The company will also be retaining the legacy liabilities, including historical pension and PFAS obligations.
SpinCo, the Seed business, is forecast to generate $9.9 billion in net sales for 2025, representing 56% of Corteva’s total. Positioned as an "unrivaled innovator," SpinCo will leverage its advanced genetics and the century-long track record of the Pioneer® brand. Current Corteva CEO Chuck Magro will transition to become CEO of SpinCo. The company, described as a "classic growth compounder," will target growth opportunities in out-licensing, hybrid wheat, biofuels, and gene editing.
Both New Corteva and SpinCo will target investment-grade credit ratings and operate with a strong commitment to being farmer-centric, with technology and innovation at their core.
The transaction is expected to be completed in the second half of 2026, subject to final board approval, a favorable tax opinion, and the effectiveness of a Form 10 registration statement with the SEC.
The initial market reaction to the official separation announcement was notably negative, with the stock seeing a significant decline due to investor concerns over potential operational disruptions and the retention of legacy liabilities by New Corteva.
