Key Takeaways
- 3M completed the spinoff of its health care unit, called Solventum, which began trading on the New York Stock Exchange and entered the S&P 500 Monday.
- The conglomerate also announced a federal court has approved its $10.3 billion “forever chemicals” settlement.
- Shares of 3M rose on the news, while Solventum shares slid.
Two big announcements from 3M (MMM) sent shares of the conglomerate higher Monday.
The first involved the completion of the spinoff of Solventum, 3M’s health care business, which became listed on the New York Stock Exchange (NYSE) under the ticker symbol SOLV.
3M investors received one share of Solventum for every four shares of 3M they owned as of the close of business March 18. 3M added the transaction was generally intended to be tax-free for its shareholders.
3M Chief Executive Officer (CEO) Mike Roman said both companies now “are positioned to pursue their respective growth and tailored capital allocation plans.”
With the execution of the spinoff, Solventum joined the S&P 500, replacing V.F. Corp. (VFC).
3M also reported that its legal settlement with public water utilities over so-called “forever chemicals” has received final approval from the federal district court in Charleston, S.C.
The company said the agreement will cost $10.3 billion, with payments spread over 13 years. It noted that the first installment will be made in the third quarter of this year, provided there are no appeals.
Roman explained that this decision, along with 3M’s continuing progress toward exiting all manufacturing of those chemicals by 2025, “will further our efforts to reduce risk and uncertainty as we move forward.”
As of 11:20 a.m. ET Monday, shares of 3M were 3.3% higher, while Solventum and V.F. Corp. shares fell 3.6% and 0.6%, respectively.