Bayer Mulling Monsanto Bankruptcy to Dodge Glyphosate Lawsuit Woes
Bayer ponders filing bankruptcy for Monsanto to discharge glyphosate litigants.
Step aside, Monsanto's a financial burden, and Bayer's facing a heap of glyphosate lawsuits. With the financial risk uncertain, a potential settlement's collapse could push Bayer to chuck its U.S. subsidiary into bankruptcy, shedding billions in damages[1][2].
Glyphosate, pseudonymously known as Roundup's active ingredient in the U.S., is under the microscope for suspected cancer-causing agents. Despite Bayer's claim of innocence, and non-carcinogenic status by U.S. authorities, a ton of lawsuits and an astounding 67,000 cases remain pending[1].
Enter a court judgment in Georgia, where Bayer was hit with a $2 billion verdict for a plaintiff claiming Roundup-induced cancer. Bayer's challenging the ruling, with the majority of remaining lawsuits still waiting in the Missouri state court[1].
If the settlement doesn't materialize, Bayer might consider Monsanto's bankruptcy, following reported consultations with legal and advisory firms[1][2]. This move could shield Bayer from creditor claims and erase claims from the company owner. Known as a subsidiary bankruptcy filing, it's been employed by other U.S. corporations to evade liability claims[1].
The tactic could usher in a clean slate for Bayer, if successful. The $63 billion spent to acquire Monsanto has already been written off, with the total loss surpassing the acquisition price[1]. When Bayer closed the Monsanto deal in June 2018, company value stood at around €100 billion on the stock market. Today, an approximate €25 billion market value pales in comparison[1].
Sources:1. ntv.de2. Wall Street Journal
- Bayer
- Monsanto
- Glyphosate
- Damages
The community may question Bayer's decision-making, given the ongoing glyphosate lawsuits and the potential employment policy changes, including the possibility of filing for bankruptcy for its U.S. subsidiary, Monsanto. Meanwhile, the finance industry is closely watching the situation, as the company faces billions in damages and has already written off the $63 billion spent on acquiring Monsanto.
