Germany-headquartered Bayer today said it intends to focus entirely on its life science businesses like healthcare and crop science, while spinning off its polymer division as a separate company.
Its supervisory board unanimously approved the board of management's plans today, Bayer CEO Marijn Dekkers said in a statement.
"Our intention is to create two top global corporations -- Bayer as a world class innovation company in life science businesses and a leading player the material science business of polymers," the statement added.
He said that both companies have excellent prospects for success in their respective industries. Employment levels are expected to remain stable over the next few years, both globally and in Germany, where the company is headquartered.
The company said that in recent years, its centre of gravity has shifted towards its life science activities with the successful launch of novel pharmaceutical products, the pending acquisition of Merck & Company Inc USA's over-the-counter products business, besides the very successful development of its crop science business.
The aim would be to continue the positive development of these activities in the future through further investment in growth, the statement said.
After evaluation of its business portfolio, its board of management has decided to focus on these areas.
Currently, the life sciences business already accounts for about 70 per cent of Bayer's sales and 88 per cent of EBITDA before special items.
It plans to float its material science business on the stock market as a separate company, within the next 12 to 18 months to access capital for its future development, the statement said.
Also, as a separate company, the material science business could align its organisational process structures and corporate culture entirely towards its own industrial environment as well as business model, the statement said.
