Solventum (NYSE:SOLV) stock went live on the New York Stock Exchange today just as its parent company, 3M (NYSE:MMM), sorted out a recent settlement related to a drinking water agreement.
Indeed, on March 29, 3M announced that its prior settlement agreement with U.S. public water suppliers had received final approval in U.S. District Court. The agreement comes as public water suppliers have accused 3M of contaminating water with toxic chemicals.
The agreement will confirm 3M’s funding of the country’s public water suppliers to detect contamination of per-and polyfluorinated substances (PFAS). 3M hasn’t admitted wrongdoing on the matter.
“This is yet another important step forward for 3M as we continue to deliver on our priorities. The final approval of this settlement and continued progress toward exiting all PFAS manufacturing by the end of 2025 will further our efforts to reduce risk and uncertainty as we move forward,” said 3M Chairman and CEO Mike Roman.
3M will contribute a total of $10.3 billion, before tax, beginning in the third quarter of the year. The company will continue making payments for the agreement over the next 13 years.
Solventum Stock Goes Public on New York Stock Exchange
Alongside 3M finalizing the settlement for its drinking water agreement comes Solventum — a growing healthcare spinoff from 3M — going public on the NYSE.
“This is an important day for 3M and Solventum, and I extend my sincere congratulations to members of both teams who have made this possible,” Roman said. “Both companies are positioned to pursue their respective growth and tailored capital allocation plans, and I am excited to see both companies succeed as they innovate new solutions and create value for their respective stakeholders.”
3M retained about 20% of the outstanding shares of Solventum common stock. Previous owners of MMM stock also received one share of SOLV stock for every four shares of 3M they owned.
While company spinoffs are something of a controversial matter on Wall Street, 3M’s healthcare business has grown notably fast over the past several years.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
