Bayer Secures €3 Billion with Apollo Deal for LARC Division

Bayer itself retains the majority stake in the new company. "The company signed a corresponding agreement with Apollo, a globally active asset manager, on Friday," the group announced. In addition, Bayer retains "full operational control over the LARC business" as well as the full consolidation effect in the group financial statements: "and will continue to be fully consolidated in the group financial statements."

Strategically, the LARC business remains part of the core business of the Pharmaceuticals Division. "The investment has no impact on the strategy or activities of the LARC business – it remains part of the core business of Bayer's Pharmaceuticals Division," the company said. Bayer intends to use the fresh equity to improve its capital structure and gain room for maneuver in the current year.

Operational Control Remains with Bayer

The closing of the transaction is expected – subject to approval by the relevant antitrust authorities and customary closing conditions – in the third quarter of 2026. This means the deal is expected to be completed within the coming months. The equity will only flow in full after the closing.

The deal is part of a broader context of financial burdens the group has been grappling with for years. In the United States, Bayer faces a wave of lawsuits amounting to several billion dollars alleging cancer risks from glyphosate-based herbicides – including the product Roundup.

Bayer recently achieved an important milestone victory before the Supreme Court of the USA. According to this, the group can no longer be sued for missing cancer warnings on herbicide packaging. Observers believe this decision could weaken the legal basis for numerous pending cases.

Background: Glyphosate Lawsuits in the USA

Back in February, Bayer had also reached a settlement in the class action lawsuit amounting to 7.25 billion US dollars (approximately 6.4 billion euros) to settle a large portion of the legal disputes. According to its own statements, this settlement has "already been provisionally approved." The oral hearing for final confirmation of the settlement is scheduled for August 19, according to Bayer.

Despite these advances, Bayer continues to reject allegations regarding Roundup. The group disputes that glyphosate-based products pose a cancer risk. With the Apollo deal, the company is now creating additional financial buffer regardless of the outcome of further proceedings.

On the capital markets, several major houses rated the Bayer stock positively after the announcement. Goldman Sachs confirmed the "Buy" rating on July 6, 2026; JP Morgan Chase & Co. rated the stock "Overweight" on July 8, 2026. Deutsche Bank AG had already issued "Buy" on July 2, 2026, and DZ BANK issued "Buy" on June 26, 2026. Berenberg Bank and Joh. Berenberg, Gossler & Co. KG also recently commented with "Hold."

Analyst Assessments

Bayer Aktiengesellschaft is listed in the DAX, the EURO STOXX 50, and the Stoxx 50. The shares are traded on the regulated markets in Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart, and Tradegate BSX. The ISIN is DE000BAY0017, the WKN BAY001. The company's registered office is at Kaiser-Wilhelm-Allee 1 in 51373 Leverkusen.

Apollo is described in the announcement as a "globally active asset manager" and "US investment firm." Through the structure – contribution of the LARC division into a new company plus minority stake – Apollo does not gain direct access to the operational business, but will in future participate in its earnings.

According to the company, the three billion euros in equity raised are expressly not intended for a specific acquisition or debt reduction, but rather serve to generally strengthen the financial base. This gives the group "more room for future measures," according to financial circles.

Outlook for the Third Quarter of 2026

For investors, the contact address for Investor Relations is also relevant. The contact person is Denise Jahn, Bayer AG, Investor Relations, reachable by phone at 0214-30-72704 and by email at denise.jahn@bayer.com. The ad-hoc announcement was published on July 10, 2026, in Leverkusen.

With the closing in the third quarter of 2026, Bayer would take a further step toward financial consolidation. In the coming months, the group also faces the final judicial confirmation of the billion-dollar US settlement. Both processes together are considered important milestones for further business development.

Overall, observers assess the Apollo deal as a pragmatic solution: Bayer gains urgently needed equity without giving up operational control over a strategically important Pharmaceuticals division. Apollo, in turn, gains access to an established, high-margin business area with stable cash flows.

If the closing takes place as planned in the third quarter of 2026, the equity will flow in before the originally expected increase in financing needs from the aforementioned bond maturities and legal disputes. This would allow the company to enter 2027 in a timely manner with a strengthened balance sheet.