Green light to Lanxess spin-off

16/07/2004

Bayer, the German chemical giant, has decided to spin off its chemical unit Lanxess, a big leather chemicals producer. The company is to be listed separately on the stock exchange as of 2005. Bayer stockholders are yet to give their consent to the plan at a November meeting.

 

Bayer’s present owners will remain the owners of assets transferred to Lanxess. The arrangement, besides convenience, is also expected to continue the offshoot’s development in line with its shareholders’ expectations.

 

CEO designate of Lanxess, Dr Axel C. Heitmann, pleased with Bayer’s decision, stressed the need to instil confidence in the company’s new stockholders and prove it is worth their investment.