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Bayer CFO sees lower Monsanto synergies after divestments: Boersen-Zeitung

Reuters  |  FRANKFURT 

(Reuters) - Bayer's potential synergies from buying U.S. rival will be lower than $1.5 billion because of anti-trust divestments, the German company's told Germany's

The $1.5 billion savings targeted within three years are a "pro forma" synergy goal, which excluded the impact of divestments, told the newspaper.

"The basis for revenue synergies is now lower. We will give an update on the topic of synergies," Dietsch told the paper.

Last month said it had agreed to sell crop science businesses to German rival to help win regulatory approval for the takeover of

Dietsch also said still plans to go ahead with a capital increase, declining to speculate about the size. The capital hike will happen around the time of the closing of the deal, and will not come before May 25, he told

will be preoccupied with reducing its debt levels in the immediate aftermath of a successful Monsanto acquisition, Dietsch told the paper.

When asked whether Bayer faces a "patent cliff" in its once licenses for blockbuster drugs Xarelto and Eylea expire, Dietsch said, "The question is how do you strengthen the pharma pipeline. Do you need a large acquisition or are there other opportunities like cooperations, partnerships licensing deals and perhaps smaller acquisitions?"

"Nobody should expect that when two of our successful products become generic, that we can just replace them in the year after. In the medium term Pharma will be a growing business," the paper quoted him as saying.

(Reporting by Edward Taylor; Editing by Ros Russell)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, May 12 2018. 17:55 IST