Bayer Plans to Sell its Crop Science Division, says German News Service
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Is Bayer AG, the German pharma giant, ready to divest itself of its Crop Science division?
A report issued on Friday by German news service Platow Brief said Bayer may spin off the division, based in Creve Coeur, Mo., (St. Louis), in an effort to improve its overall financial standing as well as its market share price.
In an email response to Farm Journal editors’ request for more information, Bayer would say only that “The Platow Brief article is based purely on speculation.”
Legal Troubles And Debt
Bayer has been long-plagued by Roundup-related lawsuits after its $63 billion purchase of agricultural seeds and pesticides maker Monsanto went askew. The purchase burdened Bayer with billions of dollars of expense in fighting claims – mostly from the lawn and garden retail sector of its business – that the glyphosate herbicide causes cancer.
At the time of the Monsanto purchase in June 2018, then CEO, Werner Baumann, had hailed it as a “great day” for the company’s customers.
“…This transaction has the potential to create significant value; and for consumers and broader society, because we will be even better placed to help the world’s farmers grow more healthy and affordable food in a sustainable manner,” he said in a company news release.
In August 2018, Bayer lost the first trial over Roundup’s alleged cancer risk. The company then won six consecutive trial victories.
For their part, U.S. corn and soybean growers have been largely undeterred by the lawsuits and continue to use Roundup and generic glyphosate in their efforts to control weeds.
New Leadership At The Helm
Now, five years later, Baumann retired at the end of May after a 35-year career with Bayer.
The new CEO, Bill Anderson, a native of Texas, joined Bayer in April and assumed leadership of the company on June 1. Anderson was most recently the head of Roche’s pharmaceuticals division.
A Reuters article published Monday morning says a decision by Anderson and team to sell the Crop Science division “would be tricky but bountiful” for Bayer.
“If it offloads the Crop Science division, Bayer could indemnify the new owners against the cost of future litigation up to a certain point. Anderson also needs to consider how he will fund future drug discoveries at the pharmaceutical business, which would remain after a spinoff,” the article said. It is available here.
Bayer’s market shares rallied 3% Monday morning, according to the Reuters news article.
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