The IG BCE trade union sees no advantages for Bayer in a split-up.

Players on the capital market want to split up Bayer and sell on individual parts, said the head of the IG BCE trade union, Michael Vassiliadis, in Berlin on Monday. "We think that's wrong," he emphasized. The individual parts of Bayer could then become weaker and themselves be the target of takeovers again. In addition, there would be a risk of headquarters moving abroad, for example to the USA in the case of the agricultural division Crop Science. Even if the pharmaceuticals business is spun off, it is unclear whether it will remain in Germany. "For us, it's about keeping Bayer together," emphasized the union leader.

Regarding Bayer CEO Bill Anderson's plans for a new management structure, Vassiliadis said that these included both interesting points and tough decisions. The management is in discussions with the employee representatives about this. The trade union still had to be convinced of the need for staff cuts in Bayer's middle management levels. Francesco Grioli, who sits on the Bayer Supervisory Board for the IG BCE, said that both sides had been discussing the question of what a new operating model for Bayer could look like in recent months. "We are (...) a good deal further along in the elaboration process, but no decisions have been made." The employee side considers Bayer to be well positioned.

According to Anderson, the Leverkusen-based company is facing a "radical realignment" in November. Several management levels are to be eliminated and coordination processes simplified. Bayer plans to announce further details of the Group's restructuring at its Capital Markets Day on March 5. In addition to retaining three divisions, Anderson recently saw a separation from the Consumer Health business or the Agriculture division as the main options.

(Report by Matthias Inverardi, with assistance from Patricia Weiß, edited by Olaf Brenner. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).