Bayer to Separate MaterialScience Business, Focus Entirely on Life Science Businesses
Bayer recently announced it intends to focus entirely on its Life Science businesses (HealthCare and CropScience) and float MaterialScience on the stock market as a separate company. The move is reportedly intended to position the company as a world leader in the field of human, animal and plant health.
The company’s Supervisory Board has unanimously approved the Board of Management’s plans. “Our intention is to create two top global corporations: Bayer as a world-class innovation company in the Life Science businesses, and MaterialScience as a leading player in polymers,” said Marijn Dekkers, Ph.D., CEO. He said both companies have excellent prospects for success in their respective industries. Employment levels are expected to remain stable over the next few years, both globally and in Germany.
Bayer reportedly plans to float the MaterialScience business on the stock market as a separate company within the next 12-18 months. The move is reportedly intended to give MaterialScience direct access to capital for its future development; this access can no longer be adequately ensured within the Bayer Group due to the substantial investment needs of the Life Science businesses for both organic and external growth. In addition, as a separate company, MaterialScience can align its organizational and process structures and corporate culture entirely toward its own industrial environment and business model.
“We firmly believe that MaterialScience will use its separate status to deploy its existing strength even more rapidly, effectively and flexibly in the global competitive arena,” Dekkers said. A strategy and corporate culture aligned to technological and cost leadership, coupled with the ability to make its own investment and portfolio decisions, would give MaterialScience the best development prospects in a highly competitive market. That, said Dekkers, includes direct capital market access so that it would not have to compete with the Life Science businesses for investment funding in the future.
Following the intended flotation, MaterialScience will reportedly be Europe’s fourth-largest chemical company; in 2013, it had global sales of more than €11 billion (~ $14.2 billion). The new company is planned to have a global workforce of roughly 16,800, including about 6,500 in Germany. It will have a new name and a separate identity, and be headquartered in Leverkusen.
For more information, visit www.bayer.com.