Bayer Shares Jump on Weedkiller Payment Proposal

   By Joshua Stein 
 

Shares in Bayer AG rose on Thursday after the German chemical and pharmaceutical giant proposed a $2 billion deal to address future litigation over its controversial glyphosate-based weedkiller Roundup.

At 1106 GMT, shares in Bayer traded 4.8% higher at EUR53.97.

Bayer's proposal, released late Wednesday, would discount the need for further financial provisions associated with the Roundup weedkiller in the U.S., which some claim causes cancer.

Analysts were widely upbeat on the development. Citi said the proposal should boost market sentiment, while UBS said the proposals "seem to address the judge's concerns" raised over Bayer's first proposal in July.

Bayer has been dealing with litigation over Roundup safety since it acquired Monsanto Co., the weedkiller's manufacturer, in 2018.

The company agreed last June to pay up to $9.6 billion to settle existing Roundup cases, while continuing to deny any connection between the product and cancer. That deal didn't prevent more plaintiffs from coming forward in the future.

Write to Joshua Stein at [e-mail]

(END) Dow Jones Newswires

February 04, 2021 06:26 ET (11:26 GMT)

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