ST. LOUIS — Bayer AG, which is engaged in settlement talks over lawsuits brought by 52,500 plaintiffs claiming the Roundup weedkiller caused their cancer, may benefit from the shutdown caused by the Covid-19 pandemic, analysts say.
“That gave more time to assess the impact of the pandemic and may help Bayer keep the total amount of Roundup settlements under $10 billion,” Bloomberg reported.
“Bayer can be a very good opportunity today: It is a well-established company that’s very cheap at the moment,” he said. “The coronavirus outbreak has generated an even more convenient price.” Bayer was trading in the $17 range Tuesday.
Bayer, which acquired Roundup in its $63 billion acquisition of St. Louis-based Monsanto Co. in 2018, also raised concerns about liquidity due to a recession and a possible Roundup settlement. The German company said it would consider only a “financially reasonable” settlement that resolves the potential for future claims.
Click here for more stories from the St. Louis Business Journal.