Investmentidea: Bayer AG
Bayer’s published figures for the last business year caused an optimistic atmosphere: the operative result (EBITDA) increased about 10,2 percent to EUR 11,32 billion. Further, the net income amounted to EUR 4,53 billion which represents a rise of 10,2 percent as well.
The revenues increased about 1,48 percent to EUR 46,76 billion. Following to CEO Werner Baumann, these figures represent the highest results in the history of Bayer.
Meanwhile, the aimed acquisition of the seed producer Monsanto is reviewed by the US authorities from an antitrust point of view. The takeover would include a volume of USD 66 billion exclusively the following costs and hence represent the largest foreign takeover by a German company. Bayer estimates the final decision until end of the year.
Generally, no substantial hurdles concerning the acquisition are expected. Monsanto’s presence focuses on the American market whereas Bayer concentrates on Europa an Asia. If at all, a monopoly could only occur in single sectors such as corn. With the respective adjustments, possible concerns could be eliminated.
Investments of USD 8 billion and 3,000 new working places
Against the background of possible future protectionism policies in the US, Bayer announced planned investments of USD 8 billion and 3,000 new working places for Monsanto.
However, Bayer reduced its share on the synthetic subsidiary Covestro about 10,9 percent down to 53 percent. The revenues might result to EUR 1,46 billion. The stocks were sold for a price of EUR 66,50 to institutional investors. Initially Bayer offered the stocks for EUR 24,00 at Covestro’s IPO. According to CFO Johannes Dietsch, Bayer aims to sell its Covestro share completely in the middle term.
Investors can leverage their Bayer-Trades with Vontobel Bull & Bear Certificates.
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