Overview

• Bayer reached a framework agreement to settle all PCB lawsuits linked to the Sky Valley Education Center in Washington state, excluding previously decided judgments.
• It expects the settlement costs to be covered by its €530 million PCB provision booked in the second quarter within a total €1.7 billion set aside for U.S. litigation.
• The announcement drove Bayer shares higher on Monday as investors welcomed progress on long-running environmental claims.
• The company inherited PCB and glyphosate litigation when it acquired Monsanto in 2018 and has faced repeated multi-billion-euro provisions to address verdicts and appeals.
• Despite the SVEC deal, existing adverse rulings and remaining legacy suits could lead to further appeals and financial liabilities.