Bayer sells minority shares in contraception business to APO.US (APO.US) for $3.4 billion, and the settlement of the Nonda lawsuit spawned an acceleration in restructuring

The Zhitong Finance App learned that Bayer Group recently announced that it has sold a minority stake in its contraception business to Apollo Global Management (APO.US), with a transaction consideration of 3 billion euros (about 3.4 billion US dollars). The funds from this equity transfer will be used to optimize the Group's capital structure.

The German giant, whose business covers pharmaceuticals and crop science, said on Friday that it will continue to be solely responsible for the operation and management of long-lasting reversible contraceptive products in the pharmaceutical sector.

The deal is Bayer's latest move to restructure its business. The company has long been plagued by lawsuits caused by its best-selling herbicide “Nongda” in the world. “Nongda” is the most widely used glyphosate herbicide in the world, and since Bayer bought Monsanto for $63 billion in 2018, related lawsuits have followed. The plaintiff mainly alleges that Bayer did not sufficiently warn users about the possible carcinogenic risks of “Nongda”.

Over the years, a storm of lawsuits has taken a heavy toll on Bayer's finances and reputation. Bayer has paid approximately $10 billion to settle claims. The company's financial report shows that net special expenses in 2025 reached 6.185 billion euros, a significant portion of which stemmed from litigation-related expenses. The risk of litigation has suppressed market valuations for a long time, causing this former leading position in German market capitalization to be significantly shaken.

In June 2026, Bayer ushered in a major legal turning point. The US Supreme Court ruled with 7 votes in favor and 2 against, confirming that when the US Environmental Protection Agency (EPA) has made a clear determination on product safety, states cannot sue Bayer for not stating the risk of cancer in accordance with state law.

Last week, after the US Supreme Court ruled in favor of the relevant lawsuit, Bayer has begun to divest its US glyphosate business (including this herbicide) into an independent operating unit to further clarify risk exposure. On July 1, 2026, Bayer announced the integration of the US glyphosate business into the unified management of Ruveon LLC, a newly established independent entity. The new entity will be fully responsible for all operational aspects of the pricing, market strategy, manufacturing and logistics of glyphosate products in the US market.

According to market analysts, this move is not only aimed at improving operational efficiency and profitability and optimizing the crop protection business structure, but may also trigger investors' expectations that Bayer will eventually separate some agricultural assets from the group. According to estimates, if initiatives such as the spin-off of the agricultural sector and the sale of the consumer health business are promoted, the total potential value of 84 euros per share can be released.