DuPont: Pouring The Cocktail

About: DuPont de Nemours, Inc. (DD), Includes: CTVA, DOW, IFF
by: Investing Fellow
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Investing Fellow
Long/short equity, healthcare

DuPont is stepping out of a long term strategy started in 2015 that had as objective to merge, and later divest the main businesses of the company.

In 2019 the strategy came to an end. In April DuPont spun off Dow, and later in June, the existing company split into two parties: DuPont and Corteva.

On December 15, 2019, DuPont divested and sold its nutrition and biosciences business to IFF for $26.2 billion.

The company still trades at "conglomerate" price, with the market underestimating the positive benefits of divestments and new organization model.

Investment Thesis

2019 has been significant for DuPont investors: first, the split of DuPont into three different companies, and later the divestment of the nutrition and bioscience business to IFF. I think that while in