DuPont to explore divestiture of electronics unit: BBG

Industry:    2020-01-17

Industrial materials maker DuPont is working with advisers to review strategic options, including a sale, for its electronics business, Bloomberg reported on Thursday, citing people familiar with the matter.

The Electronics and Imaging unit, whose customers include semiconductor and LED makers, was the smallest of Dupont’s core business by revenue at the end of the third quarter.

The unit’s revenue fell in the three quarters of 2019 reported so far, as it struggled with trade uncertainties which exasperated a cyclical weakness in the semiconductor market.

DuPont was not immediately available to respond to a Reuters request for comment.

DuPont is also considering a Reverse Morris Trust deal, according to the report. Such a deal lets a company avoid a big tax bill by spinning off a unit that it wants to divest and simultaneously merging it with another company.

DuPont in December sold its nutrition & biosciences unit for $26.2 billion to International Flavors & Fragrances Inc, in a deal that will create a new combined company.

Shares of Dupont rose 1.1% to $61.80.

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