The pressure on the company is increasing after earlier lawsuits led to substantial damage compensations.
During a recent shareholders' meeting, Bayer confirmed that the company is reserving significant amounts to cover ongoing legal costs. Major investors have called for a clear strategy to end the protracted crisis surrounding RoundUp. The management acknowledges that the current situation is unsustainable and is exploring options.
In several U.S. lawsuits, courts have ruled that RoundUp could be carcinogenic. Bayer denies any connection but has already lost multiple cases. This has resulted in billions of dollars in damages being awarded. The legal burdens continue to weigh on the company’s financial performance.
Bayer states that a point may come when it becomes necessary to completely cease the sale of RoundUp. According to the company, the current model is no longer sustainable if the lawsuits persist. This would have major consequences for Bayer’s market position in crop protection.
CEO Bill Anderson emphasized that Bayer is actively working on a plan to return to a profitable path. Various scenarios are being considered, including the possible withdrawal of RoundUp from the market. Anderson indicated that the legal problems are taking a heavy toll on Bayer’s future plans.
Some shareholders have criticized the way Bayer handled the Monsanto acquisition. In their view, insufficient account was taken of RoundUp’s legal risks. The board is now expected to make swift decisions to limit further damage.
In Europe and elsewhere, glyphosate remains permitted for now, although debates about its use continue there as well. Bayer emphasizes that, according to them, RoundUp is safe when used correctly. Still, it is acknowledged that public perception and legal realities are increasingly putting pressure on the company.
Last Friday’s shareholders’ meeting marks an important turning point for Bayer. With the extra funds for legal procedures, the company hopes to buy time to find a long-term solution. Whether this will lead to the definitive end of RoundUp is not yet decided, but the possibility is now explicitly being kept open.