Solventum completes spin off from 3M

Manufacturer 3M (MMM) has announced the completion of its healthcare spin-off Solventum (SOLV). The company has been in the process of spinning off from 3M since 2022 in the wake of lawsuits regarding the "forever chemical" PFAS (per and poly-fluoroalkyl substances). Solventum will join the S&P 500 (^GSPC).

Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest developments for both companies and how they may operate moving forward.

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Editor's note: This article was written by Nicholas Jacobino

Video transcript

JULIE HYMAN: Well, let's take a look now at a very different story. 3M, the company announcing its completion of spinning off its healthcare business, Solventum, which is going to join the S&P 500 by the way, it's up 2 and 1/2 percent today. 3M up by 5.7%. This was previously announced. We knew that this was happening that it was effective.

- This is just the effect. This is the official approval.

JULIE HYMAN: Yes, exactly. This was a planned back in 2022, but finally, it's happened as we. See the deconglomeratization, I guess, of you had GE that happened with you had 3M that happened with a number of other companies.

- Yeah, so I mean, on the suit, it sounds like this settlement just basically means 3M can avoid what I would assume would have been just years of court fights with utilities that say 3M is kind of liable for the damage they're going to have to deal with from these so-called forever chemicals. And for investors, a measure of clarity there, too. And then to your point also this news that they're going to spin off the health care business Solventum that was also another headline.

JULIE HYMAN: Right, exactly. So in terms of the settlement that you talked about, 3M had proposed $10 billion that it would settle all of these claims related to PFAS or its so-called forever chemicals that were coming from 12,000 public water systems across the US. So the court now has approved that settlement but the litigation is not necessarily finished because there are individual suits as well. But this does sort of end one overhang, I suppose, for the stock and could be another reason that we're seeing it go higher today.

-Yeah.