DuPont faces risks related to the intended business separations, including potential delays, unanticipated costs, dis-synergies, and negative market reactions. The separations may make the company less diversified and vulnerable to market fluctuations. Access to capital markets and cost of capital are also at risk. The company also faces significant PFAS-related liabilities, including ongoing litigation and potential future costs. Uncertainties regarding tax treatment of the separations and PFAS settlements pose further risks.
Financial Upside
DuPont anticipates benefits from the intended business separations, including increased focus and agility in the separated companies' respective industries. The company expects tax-free treatment for shareholders. The company also anticipates volume improvement in some segments, driven by electronics market recovery and reduced destocking. The $1 billion share repurchase program, if successful, could increase shareholder value.
