Bayer sells assets and cuts jobs as it takes impairment charge
CEO is under pressure to boost share price, dragged lower by concern over lawsuits due to alleged cancer-causing Monsanto weedkiller Roundup
Bayer, the German drugmaker that bought US seed company Monsanto, on Thursday announced the sale of a number of businesses, job cuts affecting 10% of its staff and €3.3bn in impairments. CE Werner Baumann is under pressure to boost Bayer’s share price after a drop of more than 35% so far in 2018, dragged lower by concern over more than 9,000 lawsuits it faces over an alleged cancer-causing effect of Monsanto weed killer Roundup. The group is looking into strategic options for product lines Coppertone for sunscreen and Dr Scholl’s for foot care, among the main brands of Merck & Co’s consumer health-care division it bought in 2014 for $14bn. Bayer will also divest its animal health division, the fifth-biggest player in the industry, which analysts have said could fetch €6bn-€7bn. It would seek a buyer for its 60% stake in German chemical production site services provider Currenta. All three possible transactions were previously flagged by Reuters reports. Under a cost-cutting programm...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.