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Will Bayer survive in glyphosate debate?
Chemical giant Bayer will soon hold a special shareholders' meeting to discuss issues surrounding the Monsanto acquisition and its legacy glyphosate file. Directors have expressed doubts about Werner Baumann, the CEO at Bayer, sparking a commotion in the ranks of the company.
In a meeting on Friday, April 26, 55% of shareholders voted against the decision to acquire Monsanto, openly questioning their trust in Werner Baumann. He is responsible for Bayer AG. A source within the German chemical giant late to news agency Bloomberg know that a special meeting will be convened with the shareholders shortly.
Painful file
Bayer put $63 billion on the table to acquire Monsanto. That cost the company dearly, because with the takeover Bayer also inherited the glyphosate file (Roundup). This has now led to 13.400 lawsuits in the United States. With only 2 cases behind it, the stock market cap has fallen by an unbelievable €35 billion. Shareholders have little confidence in a recovery due to the lawsuits in the pipeline.
Opinions on what to do next differ. Some believe that Bayer should surround itself with the best lawyers in order to fend off harmful statements. Others argue for a CEO who acts harder. A third strategic option is to break up Bayer into separate companies so that the pharmaceuticals business is not adversely affected by agriculture.
Bayer itself does not want to comment on the commotion and says that the directors are continuing to work on the case. Shareholders are looking forward to the coming weeks. They expect that the company should meet shareholders and allay concerns.
New study
The news comes at the same time as a new study from the United States. The environmental protection agency EPA (Environmental Protection Agency) released in a statement know that new research into glyphosate has led them to reconfirm that the herbicide is not harmful to health. These results are in line with many other international studies.
In addition to the danger to humans, the EPA also received many comments regarding the effect on insects. The agency cannot rule out the possibility that glyphosate may adversely affect certain pollinator species and the monarch butterfly. However, this potential risk is dependent on how it is administered. There is no risk by educating farmers about this, writes chairman Andrew Wheeler.
Sonny Perdue, the US Secretary of Agriculture, is pleased with the EPA's scientific research. He says the outcome is in line with other studies. "If we want to feed 2050 billion people by 10, we're going to need all the resources available (including glyphosate)," he says. The EPA employs 18.000 people, more than half of whom are scientists, engineers or specialists in environmental protection.
Niels van der Boom
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