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In 2015, chemical company DuPont spun off its performance chemicals business into a separate company called Chemours. This separation was made official with a separation agreement, which outlined the terms and conditions for the split. Here`s what you need to know about the Chemours DuPont separation agreement.

First, it`s important to understand why DuPont decided to spin off its performance chemicals business. The company had been facing pressure from activist investor Nelson Peltz, who had criticized DuPont`s performance and called for changes to the company`s structure. In response, DuPont began considering options for separating its businesses. The performance chemicals business was seen as a candidate for separation because it was a lower-margin business with a lot of volatility.

The separation agreement between DuPont and Chemours was finalized on June 28, 2015. Under the terms of the agreement, Chemours would assume certain liabilities related to the performance chemicals business, including product liability, environmental liabilities, and legacy liabilities. DuPont would provide an initial payment of $3.9 billion to Chemours to help cover these liabilities.

In addition to assuming liabilities, Chemours would also receive certain assets from DuPont, including certain patents and intellectual property rights. Chemours would also be granted licenses to use certain DuPont technologies.

One of the main provisions of the separation agreement was a provision that allowed Chemours to file bankruptcy if certain conditions were met. This provision was controversial because it meant that Chemours could potentially avoid many of the liabilities it had assumed from DuPont. However, Chemours ultimately did not file for bankruptcy.

Overall, the Chemours DuPont separation agreement was a complex and important document that helped to shape the future of both companies. Today, Chemours is a standalone company that focuses on performance chemicals and specialty materials. Meanwhile, DuPont has continued to evolve and grow in other areas, including agriculture, nutrition, and electronics.