Bayer creates subsidiary to manage glyphosate business in the USA

Bayer created a subsidiary to handle its glyphosate business in the United States. Called Ruveon, the company will concentrate all aspects related to the herbicide in the country, which includes pricing, market strategies, production and logistics.

"The consolidation of the glyphosate business in the US is a step in executing the Crop Science division's comprehensive "Five-Year Framework" strategy, previously established by the Bayer Group to drive growth, resilience and profitability, enabling an even greater focus on innovation and business operations," says a company statement.

The creation of the subsidiary comes after thousands of lawsuits in the United States, which accuse Roundup, the company's herbicide that uses glyphosate in the formula, as responsible for cases of non-Hodgkin's lymphoma cancer. Roundup came with the Monsanto portfolio, acquired by Bayer in 2018.

Last week, Bayer won an important victory in the US Supreme Court in cases regarding the herbicide. The decision determines that people cannot sue the company based on state laws claiming that Roundup should carry additional warnings about health risks, if the EPA (United States Environmental Protection Agency) has already approved the product label without these warnings.

The majority of ministers understood that the Federal Insecticide, Fungicide and Rodenticide Act prevents states from imposing labeling requirements other than those approved by the EPA. Bayer has already spent $11 billion on settlements to settle US glyphosate lawsuits.

"Ruveon is expected to act in a more agile and well-positioned manner in its *commodities* market, which requires a specialized approach to deal with competitive dynamics", continues the company in a statement.

Ruveon will be led by executive Alfonso Alba Ordóñez, who will serve as CEO. Steve Knodle will serve as executive vice president and business leader.

Source: CNN