Corteva to split along seed and agrochemical lines

In a reversal of a long-held industry practice, Corteva Agriscience plans to split its crop protection and seeds businesses into two separate companies next year.“We did not make this decision quickly or take it lightly,” Corteva CEO Chuck Magro said on a conference call with investors Oct. 1.The crop protection chemical business will continue to bear the Corteva name. The company projects that the unit will generate $7.8 billion in sales this year, 44% of its total. About half of its chemical sales come from herbicides and a quarter from insecticides. The crop protection business also has a growing presence in biologicals, which represent about 6% of its sales.The planned seed company, temporarily dubbed SpinCo, is home to the Pioneer brand and is expected to post $9.9 billion in sales this year. It is the North American leader in corn and soy and holds a number 2 position in cotton and canola.Magro will lead SpinCo. Corteva chair Greg Page will assume that role for Corteva after the separation.Corteva itself was established as part of the 2017 merger of Dow and DuPont, which combined the seed and crop protection businesses of the two big chemical companies. Corteva spun off on its own in 2019.Corteva’s split would buck industry norms. Agricultural peers such as Bayer, Syngenta, and BASF have both seed and crop protection chemical businesses and often pair certain chemicals and seeds as complete systems for farmers.But during the conference call, Magro said Corteva is outgrowing that model and that to