The two major shareholders, Bayerische Raiffeisen-Beteiligungs-AG (BRB, 34 percent) and the Austrian Raiffeisen Agrar Invest (28 percent), are expected to provide 200 million euros in liquidity. Based on this, other banks are also prepared to grant an additional 200 million euros in loans.
The core of the problem lies with the renewable energy subsidiary BayWa r.e., which consumes a lot of capital but where the sale of solar and wind energy has stalled. There have already been attempts to abandon most of this business branch.
In addition to the financial injection from the banks, BayWa is also seeking state support to ensure the company’s continuity. The group has held talks with the German government about possible state guarantees. This could provide an additional buffer and bring the necessary stability during a period of great uncertainty.
The company is undergoing restructuring to improve operational efficiency and reduce costs. According to stock market analysts, the company will not be able to avoid divesting some business units or selling equity stakes.
BayWa’s financial problems have raised major concerns among farmers and other stakeholders in the agricultural sector. BayWa plays a crucial role in the supply chain of agricultural products, from seed supply and harvest processing to the global distribution of agricultural products. German grain farmers worry whether they will be paid for the harvests they are currently bringing in and delivering to BayWa.