DuPont CEO expects to renegotiate separation agreement with Chemours
HOUSTON (ICIS)–DuPont’s CEO said on Tuesday that his company will likely renegotiate its separation agreement with Chemours.
DuPont spun off Chemours in 2015. Chemours sued DuPont in the state of Delaware in May 2019 over its spin-off. In the lawsuit, Chemours accused DuPont of using the separation as a way to offload any possible liabilities, particularly over such fluorochemicals as PFAS (per- and polyfluoroalkyl substances), PFOS (perfluorooctane sulphonic acid) and GenX (C3 dimer acid).
A judge in the Delaware Chancery Court ruled that the two companies need to settle their differences in arbitration instead of the court system, in accordance with the separation agreement. Chemours is appealing the decision.
DuPont CEO Ed Breen expects his company will prevail on any appeal. “The law is so heavily on our side on this issue. Arbitration will occur here.”
Breen expects the two sides will reach a settlement.
“We will renegotiate the agreement we have between the companies,” he said. “There are some very key guideposts in any agreement that we would come up with that are important to us.”
Breen stressed that DuPont will not do an uncapped deal, meaning that the company’s exposure to any liabilities will have a limit.
Also, the agreement will play out over several years, he said.
Breen does not expect the companies will face significant liabilities over PFOA. However, they will face liabilities over remediation and clean-up of existing sites.
Chemours declined to comment because it is in its quiet period, as it will soon release its first-quarter earnings.