3M Company MMM has recently reached a significant milestone as its settlement agreement with the U.S. public water suppliers (PWS) received the final nod from the U.S. District Court in Charleston, South Carolina.
The agreement stands as a beacon of support for PWS grappling with PFAS detection, offering a safety net for U.S.-based PWS offering drinking water services countrywide.
Expressing his contentment, Mike Roman, chairman and CEO of 3M stated, “This approval marks a crucial leap forward for 3M as we stay committed to our strategic goals. The greenlight on this agreement, coupled with our ongoing strides towards phasing out all PFAS manufacturing by 2025, underscores our dedication to mitigating risks and uncertainties as we forge ahead.”
Related: PFAS’s Forever Problem: Ohio Lawsuit Against Chemical Companies Fizzles Out
Earlier earmarked, 3M had allocated an accrual of $10.3 billion for this cause, delineating the pre-tax present value of anticipated payments over a span of 13 years in adherence to the agreement.
Foreseeing the commencement of payments in the third quarter of 2024, barring any upcoming appeals following the final approval order, 3M is strategically gearing up for the operational dynamics at play.
Adding another feather to its cap, 3M successfully culminated the spin-off of Solventum, poised to kick off trading on the venerable New York Stock Exchange (NYSE) under the moniker “SOLV.”
Existing shareholders of 3M common stock were granted a share of Solventum common stock for every four shares of 3M common stock held as on the closing bell of business on March 18, 2024, the designated record date for the distribution event.
Having retained 19.9% of the outstanding shares of Solventum common stock, destined for monetization within a five-year window following the spin-off, 3M is poised for strategic financial evolution in the times ahead.
Related: New CEO, Bottoming Cycle, And Spin-Off Fuel Optimism For 3M, Analyst Upgrades Stock
For investors seeking exposure to 3M’s stock, avenues through Invesco Dow Jones Industrial Average Dividend ETF DJD and FT Vest DJIA Dogs 10 Target Income ETF DOGG offer potential entry points.
Price Action: Valued at $91.55 premarket, MMM shares exhibit a premarket dip of 13.6% as per the latest Monday check-in.
Photo via Wikimedia Commons
