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.
