|Bid||0.00 x 60000|
|Ask||0.00 x 60000|
|Day's Range||52.30 - 52.34|
|52 Week Range||39.50 - 70.40|
|Beta (3Y Monthly)||1.38|
|PE Ratio (TTM)||12.04|
|Forward Dividend & Yield||0.90 (1.71%)|
|1y Target Est||N/A|
(Bloomberg) -- Bayer AG and Lanxess AG agreed to sell a chemical-parks operator to funds managed by Macquarie Infrastructure and Real Assets in a deal valued at 3.5 billion euros ($3.9 billion).Shares of the German companies gained on the deal, with Bayer up 1.4% early Wednesday in Frankfurt and Lanxess surging as much as 5%.The sale extends Bayer Chief Executive Officer Werner Baumann’s push to unload assets outside the core health-care and crop-science units. It comes as Bayer battles a wave of U.S. lawsuits over its Roundup weedkiller, which plaintiffs say causes cancer.Bayer’s 60% stake in the Currenta chemical-park venture has an equity value of about 1.17 billion euros. The deal includes pension obligations and debt, and the health and agricultural giant will sell real estate and infrastructure assets for 180 million euros, according to a statement Tuesday.Bayer said in November it was looking to sell the Currenta stake as part of a streamlining plan that includes cutting 12,000 jobs.What Bloomberg Intelligence Says“Bayer’s sale of its 60% stake in Currenta is positive, but unlikely to outweigh the negative sentiment following weak 2Q results and the increase in Roundup claims.”\-- Mustaq Rahaman, credit analystclick here to read the pieceThe price it secured might disappoint some investors in the pharma and agricultural giant, which has been under pressure from activist shareholder Elliott Management Corp. In May, Citigroup estimated the value of the 60% holding at 1.5 billion euros.Yet the deal boosts Bayer’s financial position as it battles the Roundup lawsuits, which it took on via the $63 billion acquisition of Monsanto. Analysts have said a settlement of the cancer allegations, which the company denies, could cost Bayer billions of dollars.To contact the reporters on this story: Cécile Daurat in Wilmington at firstname.lastname@example.org;Tim Loh in Munich at email@example.comTo contact the editors responsible for this story: Crayton Harrison at firstname.lastname@example.org, Marthe FourcadeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
German chemical groups Bayer and Lanxess have agreed to sell integrated chemical site operator Currenta to Macquarie Infrastructure and Real Assets (MIRA) for an enterprise value of 3.5 billion euros ($3.9 billion). Reuters reported last September initial plans by Bayer to divest its 60% stake in the chemical park operator, part of a string of assets it has put on the block to slash debt since its $63 billion takeover of Monsanto last year.
Germany's Lanxess said on Thursday weak demand from Chinese automakers for its plastics business, offset by a better outlook for agrochemical ingredients, would lead to flat operating earnings this year. Lanxess said it had seen a solid start to the year despite a weakening economy, predicting earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs, for 2019 to be around last year's 1.02 billion euros (871.1 million pounds), which was up almost 10 percent on 2017. Analysts at Credit Suisse said a change in international accounting standards was flattering the guidance.
Macquarie has emerged as the leading bidder for Bayer's 60 percent stake in chemical park operator Currenta, which the German drugmaker has put on the block to reduce its debt pile, people close to the matter said. Talks between Bayer and the Australian bank's Macquarie Infrastructure and Real Assets (MIRA) arm will likely continue for a few more weeks and the deal could still fall apart given the complexity of the negotiations, they added. If no deal emerges, Bayer may fall back on runner-ups DWS and KKR, the sources said, adding that it was unclear whether the Ontario Municipal Employees Retirement System, which also made a final bid in January, was still interested.
German prosecutors are pressing criminal charges against a former employee of chemicals maker Lanxess for allegedly stealing trade secrets to set up a Chinese copycat chemical reactor. State prosecutors in the city of Cologne, where the company is headquartered, told Reuters they had brought criminal charges in June against a Chinese-born German national based on a complaint filed with police by Lanxess about two years ago. There have been several reports in Germany of manufacturers with operations in China catching local staff doing work for copycat rivals.
Standard Lithium Ltd said on Monday it had signed an agreement with Lanxess AG to build a pilot plant that will process lithium from Arkansas brine, part of an ongoing study on whether to develop a joint venture to produce the white metal. The pair aim to eventually produce lithium - a key component of electric car batteries - on a mass scale from brine that is a byproduct of existing bromine production facilities run by Lanxess in the southern state. The lithium production process would be different from the evaporation ponds typically used in Chile and elsewhere to produce the metal.