DuPont de Nemours, Inc.'s (NYSE:DD) water treatment business, which the US chemicals group is planning to spin out, is drawing separate takeover interest from potential industry buyers, people with knowledge of the matter said. Xylem Inc. (NYSE:XYL) and Veralto Corporation (NYSE:VLTO) are among possible suitors that are in the early stages of evaluating the DuPont Water Solutions business, according to the people, who asked not to be identified discussing confidential information. DuPont said in May that it will separate its electronics and water units through tax-free transactions.

The process is expected to be completed within two years and will create a trio of publicly traded businesses. DuPont?s water business may be valued at about $6 billion or more including debt in any sale, the people said. Shares in DuPont rose as much as 3.1% on June 24, 2024.

The stock was up 1.8% at 3:21 p.m. in New York, giving the company a market value of about $34 billion. Deliberations are ongoing and there?s no certainty that US-based Xylem or Veralto will decide to pursue any offers for the DuPont asset, the people said. On an investor update call in May, DuPont?s Chairman Edward Breen confirmed the company was not running a formal M&A process for the water unit.

Representatives for DuPont, Veralto and Xylem declined to comment.