2025-03-07 17:55:08

Bayer's Strategic Shift Amid Legal Challenges

Bayer, the prominent chemical company based in Leverkusen, is navigating turbulent waters as it faces ongoing legal disputes related to glyphosate, a herbicide linked to cancer claims. In a bid to secure financial stability, Bayer is proposing a capital increase of up to 35% of its current share capital, amounting to approximately €875 million. This move aims to bolster the company’s reserves to address potential settlements stemming from over 67,000 lawsuits in the United States.

The company's chairman, Norbert Winkeljohann, has informed shareholders about this initiative, emphasizing its necessity during the upcoming annual general meeting on April 25. Analysts, like Fabian Wenner, view the market's reaction to Bayer's plans as justified, given the magnitude of the challenges it faces.

In light of these legal pressures, Bayer is also considering exiting the glyphosate market in the U.S. This follows the controversial acquisition of Monsanto in 2018 for $63 billion, which has led to a significant influx of litigation regarding Roundup, a glyphosate-based product. Despite the U.S. Environmental Protection Agency's classification of glyphosate as non-carcinogenic, the International Agency for Research on Cancer has labeled it as 'probably carcinogenic,' complicating Bayer’s position further.

As Bayer contemplates restructuring its glyphosate operations into a separate business unit, the focus remains on optimizing its approach to this contentious market. The combination of legal uncertainties and declining sales, projected to drop by 7.5% in 2024, signals a critical juncture for Bayer, pushing the company to reconsider its long-term strategy.

n-tv.de
7. März 2025 um 09:53

Flood of lawsuits and weak sales: Bayer is considering stopping the sale of glyphosate in the USA - n-tv.de

Economy
Finance
Environment
Bayer is considering withdrawing from the sale of glyphosate in the USA; the wave of lawsuits and weak sales are burdening the company; Bayer is examining all options to resolve the legal disputes.
AFP
7. März 2025 um 14:22

Bayer Considers Capital Increase to Finance Potential Future Legal Disputes

Economy
Finance
Environment
Bayer is considering a capital increase to finance potential legal disputes over the Roundup manufacturer Monsanto; the company has been ordered to pay damages in glyphosate lawsuits, but has also been acquitted.
EURACTIV.com
7. März 2025 um 14:40

Bayer to run glyphosate as a ‘separate business’

Economy
Environment
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n-tv.de
7. März 2025 um 15:25

Buffer for Processes: Bayer Wants to Approve Capital Increase - n-tv.de

Economy
Finance
Bayer plans a capital increase of up to 35% of the share capital in order to create financial stability for possible settlements in the glyphosate legal disputes. The company is also considering an exit from the glyphosate business in the USA.
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