DuPont appears to be gearing up for another major divestment that could become one of the chemical industry’s biggest transactions this year, reports the Bloomberg news agency, citing “people familiar with the matter.”

Bloomberg said Ed Breen, chairman of the US chemical group newly emerged from DowDuPont – who masterminded the merger of DuPont with Dow in an effort to stay one step ahead of activist investors – may want to unload the nutrition and biosciences business segment, one of its fastest-growing, as well as one of its other businesses longer-term.

Breen is said to be planning “a dramatic overhaul” of DuPont’s portfolio to salvage shareholder value in the face of slowing markets and the US-China trade war that is cramping growth at export-oriented US companies.

Speaking at an industry conference in May, Breen is quoted as saying that DuPont has four major divisions big enough to stand on their own and could sell or spin off major businesses including nutrition or electronics and imaging.

According to Bloomberg’s sources, the US group is currently working with advisers to evaluate options for separating the nutrition/bioscience unit that supplies the food industry, with options including a potential sale or spinoff.

The relevant activities with more than 10,000 employees focus on products ranging from sweeteners and emulsifiers to dairy cultures and dietary fibers, with particular strength in areas such as plant-based meats and probiotics.

Based on multiples, analysts believe the segment could be worth at least $20 billion. Its revenue rose 14% in 2018 to $6.8 billion, although DuPont’s report on the 2019 second quarter shows a slip of 4% against the 2018 quarter to $1.6 billion, down 4% from the year-ago period.

With nutrition stripped out, the Wilmington, Delaware-based group’s portfolio would be left with materials for industries such as transportation, electronics and construction.

To shape a deal, the chairman is reportedly considering a Reverse Morris Trust, which means merging with another player to create a company structured to be tax-free. Logical partners for such a deal could include DSM, Kerry Group and International Flavors & Fragrances, the news whisperers said.

No formal talks with potential buyers have yet been held and cannot be held before Aug. 31, the second anniversary of the Dow-DuPont merger.