DuPont to split into three companies

DuPont splitting up its businesses and making some changes at the top as well. Our Seema Modi's been tracking that action and joins us with details morning. And Carl, do not think there's not an NVIDIA angle here. DuPont split into three will make its electrification business as services semiconductor players a standalone company. It currently provides electronic and thermal materials, advanced packaging used and clean rooms by chip companies. And I'm told by sources that NVIDIA is a current customer of DuPont as a conglomerate. Now, DuPont shares have underperformed its peers over the last one year due in part to liabilities tied to P fast Chemicals and what the company says is underappreciated value by investors. Now, Melius analysts write this morning that Dupont's assets together perhaps didn't play well, but separately, they look, quote, pretty darn interesting. The transaction is expected to finalize in 18 to 24 months. Its water filtration business will compete directly with Xylem, which has seen its shares rise around 25% this year. Sort of a pureplay water strategy. The split does come amid a frenzy of spin offs, restructuring strategies that we've been seeing in the industrial world from GE, which most recently recently spun off GE Vernova. There's UTX, which spun off into Carrier and Raytheon and three M, which amid its troubles has seen its shares rise to a 52 week high in recent days. Guys, Sema, I, I think about Dean Dre, the analyst over at RBC, he's been using this term for probably close to a decade now. And it's still appropriate here, the urge to demerge because we have been seeing this throughout the industrial sector and really throughout conglomerates in general for quite a number of years now. I mean, Dow will say DuPont itself has been a real example of this portfolio simplification that we've seen. I mean, it was Dow, DuPont, DuPont that was brought together what, 2017? Then you saw that split into three back in 2019, so right before the pandemic. And now to your point to be seeing DuPont again simplify further into three businesses really speaks to how investors are courting these more simplified straightforward narratives within the market. I just wonder if there are other contenders out there in light of this trend. I mean, some of the names that have been brought to my attention are Honeywell, which had its own spinoffs a number of years ago. I mean, you mentioned three and we saw them take care of the healthcare business, but some of these other bigger portfolios, whether there's more potential work to be done. Yeah. We spoke to Goldman's Head of Global Banking, Morgan just a couple of weeks ago, David Dubner, who said that expect more spin offs in deals in the industrial space. Because if you look at the companies that have been leading M&A, it's been healthcare and industrials over the last 10 to 12 years. And now with this growing interest in pureplay simplified stock stories, specifically amongst younger investors, expect to see more specifically in this sector you named Honeywell. And even if you just look at companies with the largest market cap across the industrial space, Cummins is also high on the list among others. So I would imagine we'd see more action in the coming months, especially again, given the rise of pureplay strategies. Morgan.