The Bayer Annual General Meeting (AGM) held on April 25, 2025, was marked by significant criticism from shareholders, primarily focusing on the sharp decline in Bayer’s stock prices and the multi-billion dollar legal risks in the United States. These risks stem particularly from a wave of lawsuits related to the herbicide glyphosate, which continues to pose a central problem for the company.
Shareholder Criticisms
Legal Risks and Glyphosate
CEO Bill Anderson openly discussed the possibility of a marketing halt for glyphosate if the lawsuit industry continues to exert pressure. This highlights the existential threat to an important business area of the company.
Debt Reduction and Operational Issues
Representatives of major fund companies, such as Union Investment, criticized the slow pace of debt reduction despite contrary assurances from management. Additionally, the agricultural segment, core to the company after the acquisition of Monsanto, is not performing well operationally; synergies between crop protection and seeds are falling short of expectations.
Capital Increase as a Last Resort
Bayer asked its shareholders for approval to issue additional shares amounting to up to seven billion euros (up to 35 percent dilution) to create financial room and especially to contain legal disputes. The capital increase was approved; however, many shareholders see this as a sign of desperation. The hope is that the fresh capital could be used for a large-scale settlement to end the wave of lawsuits.
Outlook
The patience of many investors is running thin; they are demanding a clear increase in value by 2026, as well as a sustainable solution to the legal issues and operational challenges. If these issues cannot be resolved promptly – for example, through a settlement or a strategic realignment – experts warn of a possible dismemberment of the company.
In summary, the Annual General Meeting reflected great dissatisfaction among Bayer shareholders in light of ongoing uncertainties due to US legal risks and disappointing business development in core areas. While the capital increase was accepted as a necessary step, it remains to be seen whether it will genuinely contribute to calming the situation or merely provide temporary relief.