Bayer may split into two companies – Kommersant
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The German chemical concern Bayer AG is considering options for splitting up its business, as it is dissatisfied with its current financial performance. Bill Anderson, CEO of the concern, announced this during the presentation of the third quarter results.
“We are unhappy with this year’s results. Revenue – almost €50 billion, but zero inflow of free cash flow – simply unacceptable – are given in statement Mr. Anderson’s words to the company: “We will change Bayer to focus only on what is most important to us and get rid of everything else.”
According to Mr. Anderson, a group of company experts is now considering various options for restructuring Bayer. Among them, there are options for spinning off either the production of health products or agricultural fertilizers into a separate company. At the same time, the company can maintain a three-division structure by simply getting rid of non-core assets. But the option of splitting Bayer into three independent companies was rejected by management. In addition, Bayer will definitely get rid of unnecessary “layers of management and coordination.” Management promises to provide details regarding the future of the company in March 2024, when the annual financial report will be published.
Bayer completed the third quarter of the year with a net loss of €4.57 billion against a profit of €546 million last year, it follows from financial report companies. Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for one-time payments, fell by 31.3% to €1.685 billion. Analysts predicted that the company’s EBITDA for the quarter would amount to €1.72 billion. Such a significant The drop in profits was caused by the revaluation of assets against the backdrop of rising interest rates. As a result, the agricultural division’s non-cash assets were written down in valuation by €3.95 billion in the third quarter.
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