3M Finishes Health Care Division Separation and Court Approves ‘Forever Chemicals’ Settlement


3M Finishes Health Care Division Separation and Court Approves ‘Forever Chemicals’ Settlement

Two major announcements from 3M caused the company’s shares to rise on Monday. The first announcement was the completion of the spinoff of Solventum, 3M’s health care unit, which started trading on the NYSE under the symbol SOLV. Shareholders of 3M received one share of Solventum for every four shares of 3M they owned as of March 18, with the intention of it being a tax-free transaction. 3M CEO Mike Roman stated that both companies are now positioned to pursue their growth and capital allocation plans separately.

With the spinoff, Solventum joined the S&P 500, replacing V.F. Corp. Additionally, 3M received final approval from a federal court in a $10.3 billion settlement regarding “forever chemicals” with public water utilities. The agreement involves payments spread out over 13 years, with the first installment expected in the third quarter of this year. The company is committed to exiting all manufacturing of those chemicals by 2025 to reduce risk and uncertainty.

Following these announcements, shares of 3M rose by 3.3% while Solventum and V.F. Corp. shares fell by 3.6% and 0.6% respectively by 11:20 a.m. ET on Monday.

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