DowDuPont files Form 10, writes down $4.6 billion in Corteva Agriscience valuation

DowDuPont announced the filing of the initial Form 10 registration statement with the US Securities and Exchange Commission for the separation of Corteva Agriscience, agriculture division of DowDuPont.

James C Collins Jr, Corteva Agriscience’s CEO-elect.
James C Collins Jr, Corteva Agriscience’s CEO-elect.

Corteva Agriscience remains on track to separate from DowDuPont on 1 June 2019. The filing provides an overview of Corteva Agriscience’s business, the strategy it is pursuing and management’s priorities for the company. It also includes an assessment of its competitive advantages and market information as well as unaudited historical pro forma financial information for the intended company.

“This filing is another significant milestone in the process of preparing to separate Corteva Agriscience – a leading, global pure-play, agriculture company offering farmers a comprehensive and balanced portfolio of seed, crop protection and digital solutions to boost their productivity and profitability,” said James C Collins Jr, Corteva Agriscience’s CEO-elect.

We are excited to launch a company that is uniquely positioned to drive industry-leading growth leveraging our powerful R&D engine and our new product pipeline while capitalising on the benefits of our cost and growth synergies. Our strategy is to combine our proven innovation capabilities with our unmatched customer access to provide farmers with a portfolio of products and services that optimise yield and profitability, while improving environmental sustainability.”

“We believe our competitive strengths, including our innovation pipeline and broad portfolio of products, leadership position in key markets and strong customer relationships, will enable us to create significant value for our customers and deliver strong returns to our shareholders,” added Collins.

“Corteva Agriscience is a global market leader with an experienced management team, operating in attractive markets,” said Gregory R Friedman, Corteva Agriscience’s executive vice president and chief financial officer-elect. “We are establishing the company with a lean cost structure to compete effectively in our target markets, while continuing to invest in our growth pipeline.”

Included in Corteva Agriscience’s 2017 pro forma income from continuing operations are approximately $175-$225mn of leveraged functional and corporate costs that are not expected to continue post-spin but which do not meet the GAAP definition for discontinued operations treatment.

Meanwhile, it was reported that DowDuPont is writing down $4.6bn in its valuation of the Corteva Agriscience’s spin-off, mainly due to impairment of goodwill. DowDuPont shares fell more than 6% during after-hours trading on 18 October 2018.

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