Bayer sells minority stake in its birth control business to Apollo for $3.4 billion, prompting acceleration of restructuring as a result of Roundup lawsuits.

Bayer Group announced that it has sold a portion of its minority stake in its contraceptive business to Apollo Global Management Inc (APO.US) for 3 billion euros (approximately 3.4 billion dollars). The proceeds from this equity transfer will be used to optimize the group's capital structure. The German pharmaceutical and crop science giant stated on Friday that it will continue to be fully responsible for the operational management of its long-acting reversible contraceptive products in the pharmaceutical department. This transaction is the latest move in Bayer's business restructuring efforts. The company has long been plagued by litigation surrounding its best-selling herbicide "Roundup." "Roundup" is the most widely used glyphosate herbicide in the world, and since Bayer's acquisition of Monsanto for 63 billion dollars in 2018, related lawsuits have followed. Plaintiffs mainly accuse Bayer of failing to fully warn users of the potential cancer risks associated with "Roundup." Over the years, the litigation storm has dealt a heavy blow to Bayer's finances and reputation. Bayer has paid approximately 10 billion dollars to settle related claims, and the company's financial reports show that by 2025, net special expenses will amount to 6.185 billion euros, a significant portion of which is related to litigation expenses. Litigation risks have long suppressed market valuations, shaking the significant position of this once German market value leader. In June 2026, Bayer reached a major legal turning point when the US Supreme Court ruled 7-2 to confirm that when the Environmental Protection Agency (EPA) has made a clear determination on product safety, states cannot sue Bayer under state laws for failure to label cancer risks. Following a favorable ruling by the US Supreme Court on related litigation last week, Bayer has begun to separate its glyphosate business in the United States (including the herbicide) into an independent operating unit to further clarify its risk exposure. On July 1, 2026, Bayer announced the integration of its US glyphosate business into the newly established independent entity Ruveon LLC. This new entity will be responsible for all aspects of pricing, marketing strategies, manufacturing, and logistics of glyphosate products in the US market. Market analysts believe that this move is not only aimed at improving operational efficiency and profitability and optimizing the structure of the crop protection business but may also lead to investor expectations of Bayer eventually separating some agricultural assets from the group. It is estimated that measures such as the separation of the agricultural sector and the sale of the consumer health business could potentially unlock a potential value of 84 euros per share.