Bayer Group restructuring: Details and split only in 2024 - patience required for shareholders

Bayer Group restructuring: Details and split only in 2024 - patience required for shareholders

According to a report by www.finanzen.net, Bayer shareholders will have to be patient to find out details about the group's restructuring, including a possible split. The third quarter was difficult and there is little hope for significant improvement by 2024. Given current market dynamics and initial assumptions for 2024, growth prospects remain weak. The pharmaceutical division performed better than expected, while the crop science division posted a loss. Adjusted operating profit fell by almost a third, and the bottom line was a large loss.

The new CEO, Bill Anderson, plans to present the group restructuring by March 2024 and is considering a possible separation of the Consumer Health and Crop Science divisions. A separation would mean job cuts and cost savings, although this will not be announced until spring. This approach would be comparable to the successful demerger of Siemens, which could mean positive developments for Bayer.

The legal disputes surrounding glyphosate continue to burden Bayer's agricultural division. Despite a US appeals court ruling that the company does not have to report glyphosate's alleged cancer risks, the agricultural division has been plagued by litigation and lost profits. Analysts have left their rating for Bayer at “Buy” and maintained the price target at 65 euros, although Bayer shares fell by almost four percent in the middle of the week.

Overall, current developments show that Bayer is facing major challenges and investors need to be patient in assessing the long-term effects of the group restructuring and the potential demerger. With market dynamics and weak growth prospects, Bayer will continue to face challenges, which could also impact its share price.