Bayer Separates Glyphosate Business Amid Ongoing Legal and Environmental Controversies

In a context marked by controversy and legal challenges, Bayer has announced the decision to manage its glyphosate business as a separate entity, according to Euractiv.

This strategic move comes in response to the mounting number of lawsuits related to health concerns surrounding glyphosate—the active ingredient in the herbicide Roundup—as well as growing environmental and public health scrutiny.

Monsanto Acquisition and Its Aftermath

In 2018, Bayer completed the $66 billion acquisition of Monsanto, creating the world’s largest supplier of seeds and crop protection products.

While the merger was approved by the European Commission, Bayer was required to divest over €6 billion in assets to BASF in order to avoid monopolistic concerns.

However, the acquisition also brought significant legal challenges for Bayer, primarily tied to glyphosate. Thousands of lawsuits were filed in the United States by plaintiffs claiming that glyphosate exposure caused health issues, including cancer.

These legal battles have had a considerable impact on Bayer’s reputation and financial performance.

Strategic Shift: Separating the Glyphosate Division

Faced with mounting litigation, Bayer has decided to spin off its glyphosate business into a standalone entity.

This approach is designed to isolate litigation-related risks and protect Bayer’s other business units from the financial and reputational fallout linked to glyphosate.

By creating a separate division, Bayer aims to mitigate broader damage to the company and better manage the challenges associated with this controversial product.

EU Glyphosate Approval Renewal Sparks Backlash

Parallel to Bayer's corporate restructuring, glyphosate continues to be a contentious issue in the European Union. In November 2023, the European Commission renewed the approval of glyphosate for ten more years, following the inability of member states to reach a consensus.

This decision was based on assessments by the European Food Safety Authority (EFSA) and the European Chemicals Agency (ECHA), which found no “critical areas of concern” regarding glyphosate use.

However, new restrictions and conditions were imposed, including a ban on pre-harvest use as a desiccant and mandatory measures to protect non-target organisms.

Environmental Groups Voice Strong Opposition

The Commission’s renewal decision faced sharp criticism from environmental groups. The Pesticide Action Network (PAN) expressed disappointment, claiming the EU had “turned its back on independent science and public concerns,” while emphasizing alarming evidence of glyphosate’s potential carcinogenic effects.

Similarly, the Health and Environment Alliance (HEAL) condemned the decision, stating it was “unacceptable for the Commission to proceed given the volume of scientific evidence about the substance’s health impacts and associated suffering.”

These groups advocate for applying the precautionary principle and restricting glyphosate use based on existing scientific findings.

BASF’s Role and the Industry's Future Direction

Following the Bayer-Monsanto merger, BASF acquired a large share of divested assets, including seed businesses and the herbicide glufosinate. This acquisition strengthened BASF’s position in the herbicide market and opened up opportunities to develop alternatives to glyphosate.

With pressure mounting over glyphosate’s safety profile, the agrochemical industry is facing increased demand for safer and more sustainable weed control solutions.

Companies like Bayer and BASF are now investing heavily in R&D to find viable alternatives that meet farmers’ needs while addressing environmental and health concerns.

Conclusion: A Pivotal Move Amid a Complex Challenge

Bayer’s decision to manage its glyphosate operations as a separate entity reflects the complexity and high-stakes nature of handling such a controversial product.

While glyphosate remains a crucial tool for many farmers, concerns over its environmental and health impacts remain significant.

The future of glyphosate will depend on the ability of regulators and the agrochemical industry to balance agricultural utility with the need to protect public health and the environment.