Bayer Lowers Synergy Expectations From Monsanto Deal
25 Maio 2018 - 6:13AM
Dow Jones News
By Alberto Delclaux
Bayer AG (BAYN.XE) on Friday reduced its expected earnings
synergies from the Monsanto Co. (MON) acquisition, which has forced
the company to divest from various businesses worldwide.
The German pharmaceutical and chemicals company said it now
expects the deal to deliver an annual contribution of $1.2 billion
to earnings before interest, taxes, depreciation and amortization
before special items, from 2022 onwards.
The previous figure was $1.5 billion, although Chief Financial
Officer Johannes Dietsch had recently admitted in an interview that
it would likely be lower.
As part of the acquisition process, Bayer has been required to
divest from businesses worldwide.
Bayer also said that it expects the capital increase related to
its Monsanto acquisition to be smaller than originally planned, as
proceeds from the sale of a Covestro AG (1COV.XE) stake were higher
than anticipated. Polymer-maker Covestro was previously part of
Bayer, which now owns 6.8% of the company.
"Bayer generated proceeds of over 15 billion euros through the
separation from Covestro--around 4.5 billion euros more than
expected," said Chief Executive Werner Baumann.
Olaf Ridder in Frankfurt contributed to this article.
Write to Alberto Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
May 25, 2018 04:58 ET (08:58 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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