Negotiated settlement is solution to DuPont dispute – Chemours CEO

HOUSTON (ICIS)–The CEO of Chemours said on Wednesday that a negotiated settlement will be the ultimate solution to its dispute with its former company DuPont.

DuPont spun off Chemours in 2015. Chemours sued DuPont in the state of Delaware in May 2019 over its spin-off. In the lawsuit, Chemours accused DuPont of using the separation as a way to offload any possible liabilities, particularly over such fluorochemicals as PFAS (per- and polyfluoroalkyl substances), PFOS (perfluorooctane sulphonic acid) and GenX (C3 dimer acid).

A judge in the Delaware Chancery Court ruled that the two companies need to settle their differences in arbitration instead of the court system, in accordance with the separation agreement. Chemours is appealing the decision.

Earlier this week, DuPont CEO Ed Breen said the two sides would likely reach a settlement. “We will renegotiate the agreement we have between the companies”, he said during DuPont’s earnings conference call.

In an interview with ICIS, Chemours CEO Mark Vergnano said a settlement would resolve the differences between the companies.

“I’ve always said that I believe the ultimate solution is going to be some negotiated settlement between the two companies”, he stated.

“I still believe that is the case”, he added. “Those are hard. Those are always difficult to get to. Hopefully, at some point in time, we’ll come up with some kind of a negotiated settlement between the two companies that will be good for the mutual shareholders of each of the companies.”

Breen stressed that DuPont would not do an uncapped deal, meaning that the company’s exposure to any liabilities will have a limit.

The agreement will play out over several years, with the companies facing liabilities over remediation and clean-up of existing sites.

Interview article by Al Greenwood