Bayer to transform its business structure

Bayer is to transform its current structure into a management holding company with independent operating subsidiaries. Effective from January 2003, the decision to transfer its polymer and chemicals businesses follows the transfer of the healthcare segment and the crop protection business groups into legally independent corporate units within the Bayer group.

'We are adjusting our organisational structure to increase manoeuvrability, to improve our competitiveness, to better exploit synergies and to align our business for potential strategic partnerships,' said management board chairman Dr Manfred Schneider.

'A major factor in this decision was the need to plan for a strategic partnership,' commented Schneider.

The increasingly difficult conditions in the world market for chemicals – especially specialties, fine chemicals and life science intermediates – are leading to industry consolidation, he said, and Bayer cannot afford to ignore this in the long term despite outperforming many of its competitors in terms of growth.

The medium-term goal was to forge a strategic alliance with enhanced technological expertise, expanded marketing operations and strengthened presence in the world's major economic regions, especially in the US. 'By combining the two business groups into individual units, we are getting ready for a partnership that could lead to a jv with a similarly structured company,' he said.