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DuPont de Nemours became the latest large company to split itself after announcing late Wednesday (May 23) that it would be divided into three standalone, publicly traded companies in the next 18 to 24 months.

MarketWatch reported that the remnant leading company, known as "New DuPont," upon completion of the process, would retain its focus on industrial materials, while the other two separate companies would venture into the electronics and water filtration businesses.

CNN added that the names of the standalone electronics and water businesses have yet to be disclosed, but DuPont said that the transaction would be tax-free for shareholders.

The breakup came after several other large, multinational companies announced the breakup of their businesses in recent years. Corporate executives insist that a smaller company would streamline its operations and possibly yield better revenue results.

DuPont's announcement was only the second in its 220-year history after DowDuPont, a merger of DuPont and Dow Chemical, was split in 2019 into three companies, with its agriculture business, Corteva, being the third one.

DuPont Names New CEO

DuPont also announced in a press release that CEO Ed Breen would transition to the role of executive chairman. The board named the company's CFO, Lori Koch, as its new CEO, while DuPont Water CFO Antonella Franzen would replace Koch as CFO.

DuPont said all positions would take effect on June 1, with Koch taking her place on the company's board at its next scheduled meeting. Once spinning off its electronics and water lines was complete, she would become the CEO of New DuPont.

Breen also said in the statement that having three similar companies would help them all have greater flexibility, "unlock incremental value" for their shareholders and customers, and create new opportunities for their employees. He added that splitting the company into three would allow each company to focus on its own growth strategies, including portfolio-enhancing mergers and acquisitions.