(Reuters) - Industrial materials maker DuPont (NYSE:DD) said on Wednesday it no longer intends to separate its water business into a publicly traded company, but said it would go ahead with the spinoff of its electronics business.
The decision comes months after the company revealed plans to split into three publicly traded companies, in a tax-free manner, to unlock value and pursue focused growth.
The company said it would accelerate the separation of its electronics business and expects to complete the transaction by Nov. 1. Last year, in May, DuPont had said the transaction could take up to 24 months to close.
DuPont's electronic segment includes semiconductor technologies and interconnect solutions. The segment saw a 7.1% rise in net sales during the third quarter.
"The decision for water (unit) to remain with DuPont provides the new organization with greater strategic flexibility over time and another high growth business alongside healthcare," CEO Lori Koch said, adding that 2025 is expected to be a strong year for the water segment.
In 2015, DuPont merged with Dow in a $130 billion deal to create DowDuPont. Two years later, the company spun off its chemical businesses as Dow and agribusiness division into Corteva (NYSE:CTVA), with DuPont continuing as the company it is today.
Globally, several companies, including Maple Leaf Foods, have moved to break up their businesses into publicly traded companies in an attempt to increase profitability and revenue.
DuPont's shares, which dropped after Wednesday's announcement, reversed losses and were last up 1% at $77.00 in extended trading.
The company reaffirmed its annual adjusted profit forecast of $3.90 per share and expects net sales to be around $12.37 billion. It will release its financial results on Feb. 11.