Amundi Lifts Bayer Stake Past 3% as €2 Billion Hybrid Issue Buys Time on Glyphosate

Amundi crosses 3% of Bayer voting rights as the group places €2bn in hybrid bonds and awaits a Missouri court ruling on its $7.25bn glyphosate settlement.

French asset manager Amundi has raised its holding in Bayer, crossing the 3% voting-rights threshold on 14 September and now controlling 3.04% of the Leverkusen-based agriculture and pharmaceuticals group, according to a regulatory filing. The move by one of Europe's largest institutional investors lands at a moment when the company is simultaneously reshaping its balance sheet and waiting on a US court to sign off on the centrepiece of its legal cleanup.

That dual track was on display this week. Bayer placed €2 billion of hybrid bonds with investors after the close of trading on Wednesday, split into two 30-year tranches that drew heavy demand and were several times oversubscribed. The stock finished the previous session at €49.51.

The hybrid structure matters because rating agencies treat the instruments as 50% equity, giving the group breathing room on its credit scores without issuing new shares. Bayer has explicitly ruled out a dilutive capital increase for now. With the latest deal, total outstanding hybrid volume climbs to €6.55 billion.

A financing chain built to outlast the litigation

The bond sale slots into a broader funding programme assembled over recent months. Apollo injected €3 billion of equity for a stake in Bayer's LARC business, and conventional bond issues have added $5 billion. Divestments are contributing as well: the agreed sale of oncology drug Stivarga to Grünenthal will bring in as much as €375 million, with EU patent protection on the medicine running until 2029 and US exclusivity ending in 2030.

Proceeds from the hybrid placement are earmarked for general corporate purposes and are meant to shore up the groundwork for refinancing due in the coming years. Bayer has arranged an $8 billion credit facility to backstop both the glyphosate settlement and upcoming maturities, a line it intends to retire step by step through bonds and equity-like instruments.

The price of that flexibility is visible in the coupons. The tranche carrying a six-year call lock pays 5.75%, while the nine-year tranche carries 6.25% — commitments that will weigh on the financial result and curb future investment budgets.

Missouri holds the decisive gavel

Everything ultimately hinges on a single courtroom. Bayer agreed in February to a $7.25 billion collective settlement over its glyphosate-based weedkiller — roughly €6.3 billion at the exchange rates of the time. Only preliminary approval has been granted so far. A hearing on final approval took place before the Missouri Circuit Court on 14 September; a ruling is still pending and is expected at a later date.

Until that judgment becomes final, the $8 billion credit commitment remains a potential block on the balance sheet. Should the court reject the settlement in its final review, Bayer would face a fresh wave of individual claims, the facility would have to be serviced under different terms, and rating agencies would likely tighten the screws — putting a conventional capital increase abruptly back on the agenda.

A green light would neutralise what has been the company's single largest valuation risk in recent years, and existing shareholders would escape dilution of their stakes.

Pharma pipeline and portfolio pruning offset the legal drag

Operationally, Bayer is sharpening its profile. The pharmaceutical division has provided much of the momentum, including the first new treatment option in its field in more than three decades. At the same time, the company is shedding older products to free up cash and relieve the balance sheet, realising value on Stivarga before exclusivity lapses.

Efficiency work is running in parallel, including the joint deployment of specialised software with partners to speed up administrative processes and support margins.

The market has already extended credit for these steps. Bayer shares are up 33% since the start of the year at €49.18, giving the group a market capitalisation of €48.17 billion. The stock's 50-day moving average sits at €48.42.

As long as the provisional glyphosate agreement holds and the shares stay above that line, the restructuring story remains intact — with the final US court decision on the $7.25 billion settlement serving as the next major catalyst for the stock.