Bayer rises in Frankfurt, Monsanto weighs bankruptcy to stop glyphosate lawsuits

(Il Sole 24 Ore Radiocor) - Bayer leads the leading stocks on the Frankfurt Stock Exchange, thanks to a Wall Street Journal article according to which the German giant wants to definitively put an end to the legal actions regarding glyphosate, including the possibility of bankruptcy of its subsidiary Monsanto, which produces the herbicide based on the controversial substance . The stock has gained about three points, with the best performance among the components of the DAX 40 index.

According to the WSJ, citing sources familiar with the matter, the German agrochemical and pharmaceutical group intends to resolve the avalanche of litigation in the United States through a settlement in a Missouri state court , where most of the cases filed alleging carcinogenic effects of glyphosate are pending. If this attempt fails, Bayer would consider filing for bankruptcy against Monsanto, which markets the product under the Roundup brand . The group has commissioned restructuring experts from the law firm Latham & Watkins and the consultancy AlixPartners to examine all possible options.

The Chapter 11 bankruptcy procedure under US law would allow the company to protect itself from the claims of its debtors . Bayer acquired Monsanto in 2018 for $63 billion, exposing itself since then to a wave of lawsuits and compensation requests, which have already cost the group hyperbolic figures. In the meantime, sales of the product to American citizens, who constitute the vast majority of the plaintiffs, have been halted. So far there has been no direct comment from Bayer on the article, other than to recall a previous statement in which the group stated that it is "evaluating all possible measures to significantly limit litigation by the end of 2026". According to the most recent estimates, Bayer has paid out about $10 billion (9.2 billion euros) in lawsuits related to Roundup so far, but thousands of other lawsuits (over 60,000 according to estimates) against the herbicide are still pending. For these remaining lawsuits, Bayer has set aside about $6 billion.