On Monday, 3M made two major announcements that caused its stock to rise. Firstly, the company completed the spinoff of its health care unit, now known as Solventum, which began trading on the New York Stock Exchange under the ticker symbol SOLV. Shareholders of 3M received one share of Solventum for every four shares of 3M they owned as of March 18, with the transaction intended to be tax-free.
Secondly, 3M reported that a federal court has approved its $10.3 billion settlement related to “forever chemicals” with public water utilities. The company will make payments over 13 years, with the first installment expected in the third quarter of this year.
According to CEO Mike Roman, both companies are now in a position to pursue their growth and capital allocation plans. With the spinoff, Solventum also joined the S&P 500, replacing V.F. Corp. Roman emphasized that this settlement, along with 3M’s plan to stop manufacturing those chemicals by 2025, will help reduce risk and uncertainty for the company moving forward.
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.
