Agrichemicals firm Corteva explores splitting seed and pesticide units, WSJ reports

Sept 12 (Reuters) - U.S. agrichemicals firm Corteva CTVA.N is exploring a breakup that would separate its seed and pesticide businesses into two separate companies, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Separating its crop-seed unit from its pesticide business could help shield its seeds from any potential future liabilities associated with its pest and weed-killing chemicals, the report said, adding that the company is expected to reveal plans soon, barring any last-minute snags.

Corteva, spun off from chemical conglomerate DowDuPont in 2019, did not immediately respond to a Reuters request for comment. Its shares rose 1.6% in extended trading and it had a market capitalization of nearly $50 billion as of Friday.

"If Corteva decides to separate... it would give investors better choices as there would be a pure-play leading seeds company and pure-play leading crop protection firm," said Morningstar analyst Seth Goldstein.

Corteva's possible split underscores a growing wave of corporate separations in 2025, as major companies such as Honeywell HON.O, Kraft Heinz KHC.O and Warner Bros Discovery WBD.O respond to investor calls for restructuring.

Last year, DuPont DD.N had also planned to split into three publicly traded units to pursue focused growth, but later decided against selling its water and protection unit.

The agrichemicals industry has been grappling with a potential fallout from shifting tariff policies, which are expected to lower demand and curb farmers' spending.

Corteva is among the largest crop-protection product makers in the U.S., competing with Syngenta and German firms BASF BASFn.DE and Bayer BAYGn.DE.

It raised adjusted profit and sales forecasts for the year in August, following strong performance in the first half.

DowDuPont was formed in 2017 after the merger of DuPont and Dow Chemical. Two years later, it spun off its chemical business as Dow DOW.N and the agribusiness division into Corteva, with DuPont remaining on as the company it is today.