(Reuters) -Corteva said on Wednesday it would separate its seed and pesticide businesses into separate publicly traded companies, as the agrichemicals firm seeks to sharpen its strategic focus and boost shareholder returns.

The separation will allow each company to set specific capital allocation strategies, respond faster to market shifts and pursue growth opportunities independently, Corteva said.

“The seed and crop protection markets have evolved, and as a result, we see the opportunities ahead for both companies diverging – this is the right time to act to stay ahead of the market,” CEO Chuck Magro said.

Shares of Corteva rose nearly 1% in premarket trading following the news. The Wall Street Journal had first reported Corteva’s plans of a split on September 12, and the company stoc

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