![]() Spinning off consumer health would be the easiest way to generate value.”Įven as he pledged to act fast, Anderson acknowledged that it could take as long as five years to fully exit either Bayer’s crop science or consumer health businesses. “Simplifying the group structure would be an important step in making the company more attractive on the capital market. ![]() “As hoped, Bill Anderson is turning over every stone at Bayer,” said Markus Manns, portfolio manager at Union Investment, a shareholder. Anderson said he has considered, but then ruled out, a simultaneous three-way split. ![]() His statements are the most tangible picture Bayer has ever offered about its openness for potentially breaking up the current business model. It has shed 20% in the past 12 months.Īnderson joined as Bayer confronts a thicket of challenges on both the crop science and pharma fronts. The stock fell about 0.8% in Frankfurt trading. “We maintain our strong view that the value creation opportunity by separating the three businesses, and running each of them more efficiently, is very significant.” “It is refreshing to hear Bill saying that ‘the status quo is not an option,’” said Marco Taricco, co-chief investment officer of Bluebell Capital Partners, an activist that’s built a stake in Bayer and is pushing for a breakup. Bayer reiterated that sales and profit will likely fall this year and said it expects “a soft growth outlook and continued challenges” to profitability next year.īayer expects to generate zero free cash flow this year despite nearly €50 billion in revenue, something Anderson called “simply not acceptable.” The CEO pledged to remove multiple layers of management by the end of next year and elaborate on future plans for Bayer at an investor day in March. The German company’s earnings plunged 31% last quarter to €1.69 billion ($1.80 billion) before interest, taxes, depreciation and amortization, missing estimates and hurt by falling prices for glyphosate, the active ingredient in the weed killer Roundup. That will likely impact the workforce as well as the company’s structure, he said. “We are redesigning Bayer to focus only on what’s essential for our mission, and getting rid of everything else,” Anderson said as the company reported disappointing third-quarter earnings. Baumann rejected such a step, even after the $63 billion takeover of Monsanto turned sour and activist investors demanded action. (Bloomberg) - Bayer AG’s new chief executive officer said he’s weighing a breakup of the pharma and agriculture conglomerate, a move that could undo much of the legacy of his predecessor, including the troubled acquisition of Monsanto.īill Anderson, who took over as CEO in June from Werner Baumann, said he may separate Bayer’s consumer-health or crop-science operations.
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