Bayer will consider selling its animal health unit if it continues to struggle, the company’s incoming chief executive said.
“Animal Health is a business that we have been trying for many years to strengthen strategically—that is to say, inorganically; that is still our goal,” said strategy chief Werner Baumann, who is to take over as CEO on May 1.
Baumann declined to comment on how much longer Bayer would continue looking for takeover targets for the veterinary drugs unit.
“Should we not succeed at that in the end, we will have to ask the strategic question—as is the case with all our businesses—are these businesses well placed with us as best owner or can these businesses perhaps progress better in a different environment, with different access to resources,” Baumann said.
Bayer is on track to become a second-tier player in animal health behind four market leaders. This is the result of major consolidation moves in the sector.