Bayer AG (OTC:BAYRY) has ruled out a Monsanto spin-off for now despite facing mounting lawsuits tied to its Roundup weedkiller, a legal battle that continues to pressure the company.
A company representative, speaking to Reuters on the sidelines of the Wall Street Journal’s Global Food Forum, said Tuesday a restructuring could be considered in the future but is not currently under discussion as the German chemical giant focuses on improving performance and addressing its legal challenges.
No Breakup, For Now
Bayer’s decision to keep its current structure suggests management believes operational improvements and litigation-related solutions offer a better path forward than a breakup, even as investors continue to monitor the financial impact of ongoing lawsuits.
Inclusive Capital Partners, led by activist investor Jeffrey Ubben, moved to sell its Bayer stake earlier this year at a price below where the firm initially built its position, underscoring the challenges the company has faced since the Monsanto acquisition. Ubben was one of the bigger voices asking the group for a breakup.
Roundup Litigation Remains Key Challenge
Bayer inherited the legal challenges when it acquired Monsanto for $63 billion in 2018, a deal that gave the company control of the Roundup herbicide business but also exposed it to thousands of lawsuits alleging that the weedkiller causes cancer.
It has already spent billions of dollars resolving Roundup-related claims, though the litigation continues to weigh on the company’s financial outlook and investor sentiment.
Bayer CEO Anderson, when speaking at the forum, said the Roundup-related lawsuits remain one of Bayer’s biggest challenges, warning that continued legal uncertainty could ultimately affect domestic production of glyphosate-based products.
“If there’s not a solution to the litigation problem on glyphosate, there won’t be American-produced glyphosate,” Anderson said. Bayer is currently the only domestic producer of glyphosate in the United States.
Shares Remain Under Pressure
The shares of the company, which have fallen roughly 66% since the acquisition, closed nearly 3% lower on Tuesday.
While Bayer continues to pursue operational improvements and litigation-related solutions, the stock remains well below pre-Monsanto acquisition levels, reflecting investor concerns about the long-term impact of the Roundup lawsuits.
Benzinga's Edge Stock Rankings indicate that BAYRY maintains a weak price trend in the short, medium, and long terms, with a growth score of 5.38th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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