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DowDuPont’s Corteva Sold Its Herbicide Product Line

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Corteva sold its herbicide product line

On January 3, American Vanguard (AVD) announced that it acquired the Quizalofop product line of herbicides from Corteva Agriscience—DowDuPont’s (DWDP) agriculture division. However, the parties didn’t disclose any of the financial aspects of the deal.

The product line includes soybeans, canola, and pulses sold in the US and Canada. As part of the transaction, American Vanguard will get technical registrations, commercial sales information, and the transfer of existing product supply arrangements.

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Eric Wintemute, American Vanguard’s chairman and CEO, said, “Our acquisition of the QPE product line from Corteva Agriscience provides our crop protection business with a portfolio of valuable herbicide brands that hold significant leadership positions in the North American market. These products are complementary to existing glyphosate, glufosinate and 2,4D use, and are highly regarded for weed and grass control by providing a broad window of application and excellent crop safety.”

DowDuPont’s stock price

DowDuPont’s stock prices gained 3.2% and closed at $54.73 for the week ending January 4. Despite the gain in the stock price, DowDuPont traded 9.8% below the 100-day moving average price of $60.71. DowDuPont’s 100-day moving average has fallen from a high of $72.06 to the current levels, which indicates weakness in the stock. DowDuPont struggled in 2018 with a decline of 24.9%. However, DowDuPont has started 2019 on a positive note. DowDuPont’s 14-day relative strength index of 52 indicates that the stock isn’t overbought or oversold.

Investors could hold DowDuPont indirectly by investing in the Materials Select Sector SPDR Fund (XLB). XLB has invested 21.9% of its portfolio in DowDuPont. XLB also provides exposure to Linde (LIN), Air Products and Chemicals (APD), and LyondellBasell (LYB) with weights of 15.1%, 6.2%, and 4.7%, respectively, as of January 4.

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